When US companies buy crude oil...do they collectively purchase it..or does each company negotiate a price?
820142
I wouldn't be surprised if US anti-trust laws prevent The Evil Oil Companies from collectively (and legally) negotiating prices from their suppliers.
508328
Nobody knows.  Nobody.  Anybody who says they do is full of crap.  But here's a handy formulat to figure out how much gas should be based on oil prices.  If it's more by you, your gas station is likely price gouging.\n\nA barrel of oil hold 42 gallons.  So Divide the prive of a barrel by 41, then add in $1.00 in refining costs to get your approximate price.  This number only works in the U.S., sorry, I don't know the processing costs for other countries.  And this is for regular unleaded, the premium octanes cost more of course.\n\nSo at $63/bartrel, gas should be $2.50 a gallon.\n\nAt $70, it should be about $2.67 a gallon.\n\nAnd at $50 a gallon, tit should be about $2.19 a gallon.\n\nSo if it ever goes up to $100/barrel like those morons at Goldman Sachs said last year, then you can expect to pay at least $3.38 a gallon!
586157
Fill your tanks only half full uneless you need to make a long trip.You do not need to stock Bush's & Cheeny's gas on your shelf.This will cost the oil company's $3000,000,000.00 a day and will leave only half the room in the supply tanks To but in new gas.The tankers will be stacked off the coast trying to unload.I remember coffee going to $5.00 a pound in the seventys.People stopped buying and in two weeks the price was down to $1.50 a pound.Lets go Amercians the power is in your purse's and wallets "Let's Roll"
436434
Actually, gas prices in the US are artificially low.  We pay about 1/2 to 1/3 of Europe's prices.  Prices here fluctuate almost arbirarily, but also in accordance with supply and demand, and, of course, the price of oil.  It's precisely because we're in this war over oil that prices has gone up. War makes production and distribution a pain, to say the least.  Other oil producing nations, like Venzuela and Nigeria have also had political distruptions.
343062
There's no set answer.  Basically, gas stations buy from the cheapest provider, so any given gas station will buy from Exxon if Exxon happens to be selling gas at the lowest market price at that time.\n\nhttp://www.snopes.com/politics/gasoline/gasout.asp
819806
The price went up for us but the cost of crude remained the same.  Today crude costs went down.  Will lower prices follow?  Something smells around here.
982898
If a company wishes to acquire another, that company needs to offer a price that will entice the stock holders to accept the offer.  From the acquiring company's standpoint if it is an exchange of stock offer, it does not cost the company any money to acquire the other company.  They are just issuing more paper.  You will often read about the dilutive effect on the acquiring company's earnings from the aquisition.  Managements are under preasure to grow their sales and earnings.  One supposedly simple way to do this is to acquire another company, then fire the support personel to cut overhead.   However, it very often does not work out that way.
815244
Any multination company - regardless of how moral a standpoint they assume in their country of origin- will only do the MINIMUM required by any country in which they operate.\n\nFor instance American oil companies will comply with tight environmental and safety restrictions when working in, say, the North sea, Canada  or California, but it is a very different story when they are operating in Africa or South America.  They don't think twice about paying bribes, either.
284801
The demand for oil sets the price. Oil companies aren't responible with their power given the history of Hurrican Katrina they made a record billions of dollars in profit over this disaster.
1164994
Not to get political but Clinton allowed the 5 major oil companies to buy the smaller out (monopoly  is not allowed in US). With that power they can charge what they want because there is plenty of money to go around. If you look at the profits of these companies it is outrageous. Now according to statistics-we have the same amount of oil coming in as last year and have used less (because of cost) and yet their profits were higher.\n They claim they are preparing themselves in case of a future shortages. These 5 major companies also kick plenty in for campaign money to future Government who will leave them along. Who would pass a bill against the one who feeds you?\nUntil public outcry or a true cut off of oil from other countries the price will vary just a little here and there up and down but never where it was.
759069
It's their product......from their company.....yet they can't set their own price?\n\nSo that means if I want to buy something from you....and you want $20 bucks and I only want to pay $5....that means you must sell it to me for $5....cause I want it for that.\n\nDon't go into the field of business as you have no clue how it works.
1049330
I dont disagree with your theory.  I just want to add one of my own that helped push the prices up.\n\nA few years ago the oil futures went on the public trading market.  Yes.  The public, the entity as a whole that believed everything from the world is flat to Milli Vanilli can sing, is at the helm of the future prices of crude.  Can you imagine what happens when the public hears that there was a problem, of any magnitude, to a oil line or ship?  What happens when summer comes around and naturally the public again buys up all the oil futures in hopes to make a quick buck.\n\nGreed is what drives prices.  The greedy people that are making the money will call it marketing/economics.  No one entity is to blame for the results.  It would be too easy.  Just dont leave out anyone at fault.  Bush, Iraq, war, EPA, tax, and even the public are all together and individually at fault.
1118910
Houston will add another publicly traded energy company to its roster later this year, when Roswell, N.M.-based Hondo Oil & Gas moves its corporate headquarters here. \n\nThis latest corporate relocation, however, isn't likely to excite the Houston housing market too much. \n\nOnly one Hondo employee -- C.B. McDaniel, company secretary and counsel -- will be moving from New Mexico to Houston. The corporate office eventually will house four workers. \n\nThe company's president and chief executive, John Hoey, won't be moving here. He'll continue to live in Pennsylvania. \n\nStill, Paul Hayes, an analyst with Oppenheimer & Co., said the move only makes sense. "Roswell is not exactly the transportation center of the Western Hemisphere." \n\nWith revenues of only $44,000 in fiscal 1995, Hondo Oil & Gas has never exactly been a blue chip stock. \n\nBut the chairman of this oil and gas producer is Robert O. Anderson, the former chairman of Atlantic Richfield Co. and a legend in the Oil Patch. \n\nAnd the company became the talk of the industry when it sold off all its other oil and gas assets and bet the ranch on one investment, development of the Opon gas field in Colombia. \n\nThe partners in the project, led by Chicago-based Amoco Corp., planned to build a $59 million pipeline and sell 80 million cubic feet of gas a day to Ecopetrol, Colombia's state-owned oil company. \n\nImpressed by the field's prospects and by the Anderson mystique, investors pushed up Hondo shares to a high of 241/8 in August. \n\n"This was a good project," McDaniel said. "It made sense." \n\nBut then the Colombian government changed the terms of the deal, insisting on a lower gas price ceiling and less-favorable pipeline tariff terms. \n\nSuddenly, the whole project was in jeopardy. Last week, Hondo's stock plunged to a low of 9¼. \n\nUnder the current terms, "we would think it probably would not go forward," McDaniel said. "We don't know at the moment." \n\nBy Wednesday, the company's stock had rebounded to 107/8 on word that London-based Lonrho PLC, the company's chief creditor, had completed its plan to gain control over 77 percent of Hondo Oil & Gas voting stock. \n\nAnderson will stay on as chairman of the company, though he and his family will retain only a minority stake.
14196
I'm sure they will have to sell it at the market price just like all the rest of the oil producers. Oil market trading takes place in London and New York using benchmark crudes from specific areas. Most other crudes are priced plus or minus one of those benchmarks, such as West Texas Intermediate, or Brent Crude (from the North Sea). The price differential is according to the quality of the crude oil and the distance required to ship the oil to market.\n\nAlgeria produces 1.23 million barrels per day as well as substantial quantities of condensate and natural gas. About 90% of Algerias exports of oil go to Western Europe, predominantly Italy.
202996
I have! Oil prices go down and gas goes up. Supplies increase the price at the pump goes up. The 2nd biggest oil deposit in the world comes under U.S. control.... You get the idea. Enough is enough. His friends have all made a buck on this insanity, let's go back to $1.00 a gallon.
840409
HI !\nYour problem is called spread. Spread is the difference between bid and ask price. Spread price depends on a brokerage company.\nIf you wan to learn more you may want to check out some course so you wont loose more money. \nI suggest forexonlinecourse.com. And help with your trading check out forexonlinesignals.com.
74863
If anyone knew in great detail the answer to that question they could make millions of dollars by purchasing futures contracts on the minimum margin requirnment. \n\nThey only way you can get an answer to that question is if you wait three months and check The NYMEX Crude Oil futures quote.\n\nOr refine your question to something that can be answered.