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seen Mar 2 '11 at 15:28

Mar
1
comment Supply and Demand of Oil
Suppose "big oil" were to keep there net profit the same this year as, say, last to reduce the price at the pump. How much will it actually reduce it? Would it be drastically different(say 50c or more) or due to the huge market(millions of buyers) it would just be a few cents?
Mar
1
comment Supply and Demand of Oil
Effectively the "big oil" has the "big market" and hence increases in price will effect them more than Saudi Arabia? If this is true then the big oil companies still have control of their profit and could surely reduce their profit to compensate for the increased in price and keep there total profit about the same? Since Lybia is a short term thing it would pass. I'm not saying a business has to do such a thing but it can.
Mar
1
comment Supply and Demand of Oil
OK, so what your saying is that when we lose supply the price goes up cause demand is about the same. The profit is gained by all sellers but at different amounts depend on what they sale for. Since US oil is higher priced they gain the most?
Mar
1
comment Supply and Demand of Oil
So what your saying is that their is a monopoly on oil? You give an example of a competitive market of why prices are able to change. Also, then it is in the "interest" to keep prices high(to exploit them) is it not?