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Subject Your understanding of the economics behind the
     
Posted by MidLifeZ (DFW) on June 18, 2008 at 7:54 AM
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In Reply To your* but 2nd otherwise. It's about greed, entirely. posted by ZLover4Life on June 17, 2008 at 11:40 PM
     
Message high oil company profits is flawed.

The issues causing high prices are:

Demand and options/futures traders, with the latter being the one with the most impact AND the factor that is generating the largest portion of the record profits for the oil companies. To put it another way, the futures trading game is also why Southwest Airlines is today using fuel that cost them equivalent of $51 a barrel. Basically they bought a ton of it some time ago, paying cash, for more than they needed at that price and are using it now.

In reality, oil consumption in the U.S. is down approx. 10% from a year ago.

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[Sigh] Z SOLD 02.17.2007

     
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