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To: econjack
This assumes Margins is constant. Usually, margins are compressed when prices are falling.

Constancy of margin is irrelevant. Margin X volume always equals profit.

If one does the math, that means that it makes no sense, as some are alleging, that SA is dropping the price to make more money. If the price of oil drops by half, it would be necessary to at least double volume of oil pumped. That's not happening.

41 posted on 01/15/2015 8:24:46 AM PST by gogeo (If you are Tea Party, the eGOP does not want you.)
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To: gogeo

Actually, we are agreeing. All I was saying is that what they are doing is not consistent with trying to maximize profits, so there must be some other reasons for their actions and I was speculating that the reasons are political more than economic.


43 posted on 01/15/2015 8:54:10 AM PST by econjack (I'm not bossy...I just know what you should be doing.)
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