Right Thinking From The Left Coast
The Government is merely a servant -- merely a temporary servant; it cannot be its prerogative to determine what is right and what is wrong, and decide who is a patriot and who isn't. Its function is to obey orders, not originate them. - Mark Twain

Oily Futures
by Lee

Here’s the latest example of eeeeeevil oil kkkorporations manipulating the price of their product.

Oil fell more than two dollars on Monday, unwinding gains made after a foiled al Qaeda attack on the world’s biggest oil processing plant in Saudi Arabia.

No supplies were disrupted from the leading oil exporter, but tension remained high.

Wow, how about that.  When supplies go down, the price goes up.  When it turns out that the supply is fine, the price goes down.  Wow, it’s almost like basic economics.

Posted by Lee on 02/27/06 at 02:23 PM (Discuss this in the forums)

Comments


Posted by on 02/27/06 at 03:29 PM from United States

Lee, do you think that all claims of price gouging made in the last year or so are false, then?  I’m talking about on a corporate level.  Not on a station/franchise level.

Posted by on 02/27/06 at 03:34 PM from United States

I know it’s off the subject, but does Hillary REALLY believe that Rove obssesses over her?  LIke maybe practicing self-abuse with a political photo of her?

Really!

Reason for Playing with Yourself?

Posted by Drumwaster on 02/27/06 at 03:41 PM from United States

Posted by mikedomi39 on 02/27/06 at 01:29 PM

Lee, do you think that all claims of price gouging made in the last year or so are false, then?

The only evidence of gouging at the corporate level is the massive quantity of the profits shown, not because of profit margin (which you would expect to be wildly outside the norm if they were truly gouging), yet the margin is right around 6%, year after year. The whole argument against those margins are that “people shouldn’t make that much money”.

The whole “because profits are evil” is conveniently left unsaid.

Posted by on 02/27/06 at 04:30 PM from United States

people shouldn’t make that much money

.  That’s about right.  I worked with a La Raza type in California whose sole goals in life are the establishment of Atzlan and a maximum net worth cap of $8 million.  Why 8? have no idea.
Posted by on 02/27/06 at 05:00 PM from United States

The only evidence of gouging at the corporate level is the massive quantity of the profits shown, not because of profit margin (which you would expect to be wildly outside the norm if they were truly gouging), yet the margin is right around 6%, year after year. The whole argument against those margins are that “people shouldn’t make that much money”.

If they made much less of a margin than that, they would be an absolute failure.  Any company whose marginal return on capital falls below the returns available from secured investments is effectively destroying capital.  For a capital intensive industry such as this one, 6% is just acceptable.

Posted by FPrefect on 02/27/06 at 05:35 PM from United States

Hey, not that I don’t mind, but I kinda like that the price has been going down.  I just filled up with super (damm E10 crap) and only paid 2.099 a gallon.  Also I didn’t have to get outta my car.  Ahh, gotta love Oregon.

Posted by LandoGriffin on 02/27/06 at 06:13 PM from United States

Bu .. but .. the corporations

Posted by on 02/27/06 at 08:36 PM from United States

...in their corporation buildings...getting all...corporation-y…

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