Quote:
Originally Posted by jjchieffan
You are totally missing the point Donger. Forget the F'ing product. I am talking about conducting business. But, if you want to talk about a globally traded product, try corn. I knew a man with a feed business. His feed prices varied with the market. When his corn cost him $3 a bushel, he charged for his feed based on paying $3 a bushel. If he found out that corn would be $3.50 a bushel next week, he did not automatically raise his prices 50 cents to cover the cost of the next load. You know what he did? He told people that the price was going up next week, and they might want to get more now because next week, his cost would go up and so would the feed. And when the price dropped 50 cents for corn, he dropped his feed price accordingly. Now that is the ethical way to do business. The oil business is not ethical. They are corrupt. They take advantage of the fact that people have to have their product. One thing drives oil and gas prices Greed.
|
One of things that you are missing is that amount of time that it takes for crude to pumped to when it becomes refined, usable product.
That being said, we could do comparisons like this all day, but the fact remains that the profit margin of oil companies still remains lower than many major industries.