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Oil companies 'feel shame over prices'
perthnow ^ | 3/23/08 | pethnow

Posted on 03/23/2008 6:11:04 PM PDT by Flavius

ARROGANT oil companies realised they'd "gone too far" and allowed petrol prices to fall over the Easter long weekend, says a leading motoring group. The NRMA claims petrol prices rose between 15 and 20 cents a litre on the Thursday before the Easter long weekend, reaching an average of about $1.50 per litre.

Oil to stay below $110 a barrel: OPEC Oil to stay below $110 a barrel: OPEC Competition Policy and Consumer Affairs Minister Chris Bowen dismissed allegations that drivers were being ripped off, saying the price hikes were part of the weekly price cycle.

But motoring group NRMA disagrees, arguing that the cost at the bowser soared above the average weekly price cycle.

"We used to see the normal price cycle as being four to seven cents over the week, lately it's gone up to 10 cents but we've certainly never seen 15 to 20 cents as we saw on Thursday,'' NRMA president Alan Evans told ABC radio.

Mr Evans said the powerful oil companies reacted to the pressure they received over the rising costs and have now brought the prices down.

"I think the oil companies felt the shame and the pressure that they've got from the media for the behaviour on Thursday,'' he said.

"I think they outraged the public by the amount they increased their petrol on Thursday - you know, 15 to 20 cents right in front of people's eyes was just too much to bear.

(Excerpt) Read more at news.com.au ...


TOPICS: News/Current Events
KEYWORDS: australia; energy; gasprices; marines; oil
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To: infantrywhooah
I am no fan of government getting involved in pricing but it seems like the petroleum industry could stand to see some regulation.

Welcome to Free Republic

21 posted on 03/23/2008 6:40:24 PM PDT by sionnsar (trad-anglican.faithweb.com |Iran Azadi| 5yst3m 0wn3d - it's N0t Y0ur5 (SONY) | UN: Useless Nations)
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To: Flavius

Oil companies do not set the prices for oil any more than farmers set the prices for ag commodities.


22 posted on 03/23/2008 6:42:03 PM PDT by Conservativegreatgrandma
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To: infantrywhooah

It is because of regulation (and taxes) that prices are what they are. If we could build power plants and refineries, and drill for the oil resources we know we have, the market price of oil would be half of what it is today.


23 posted on 03/23/2008 6:42:40 PM PDT by Content Provider
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To: politicalwit
Crude oil is sold on the world market. Exactly how can the US government regulate prices?

As the Saudi Oil Minister explained, and the US MSM ignored and no one understands anyway, about $20 per barrel is due to speculation on the futures market.
How can the US regulate this?
1.) Raise the margin requirement to 100%.
or
2.) Allow only physical delivery contracts.

24 posted on 03/23/2008 6:44:01 PM PDT by atomic_dog
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To: Sunnyflorida
The only way to lower the price is to increase the supply which is very easy. Just drill in the USA and refine in the USA.

The RATS won't let us do that. This oil crisis can be laid right at the feet of Democrats and their radical environut friends.

25 posted on 03/23/2008 6:45:13 PM PDT by Conservativegreatgrandma
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To: Flavius
I used to work in the Crude Trading group of a major oil company. Most of the trading we did was "requirements" trading. That is, we were buying crude to supply our refineries.

We did not set the price we paid on the open market to buy that crude - we paid market price. The market price was heavily influenced by the traders on Wall Street - who didn't own refineries that had to be kept full of crude.

From the time the tanker of oil left a port in West Africa, ownership could change hands dozens, if not hundreds, of times. Sometimes a single company would own the same crude several times before it ended up in the hands of the refiner.

If you want to look for a villain, look to Wall Street, or to China and India, who's demand for oil has skyrocketed over the past decade.

China is building a pipeline across the who of Kazakhstan in order to get their hands on the oil that is and will be produced from the Caspian Sea.

Simple rule of economics: If you want the price of oil to fall, produce more of it (i.e., make supply greater than demand). If American is serious about the price of oil, they would begin drilling in ANWAR. Why is it okay to drill off the coast of California, but not off the coast of Florida?

26 posted on 03/23/2008 6:45:31 PM PDT by Cowboy Bob (Illegals : Why spend the money to educate them if its against the law to employ them?)
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To: headstamp 2

9/10ths is a fraction


27 posted on 03/23/2008 6:46:00 PM PDT by itches (hey George now would be a good time to win the war)
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To: Flavius

Federal and state governments should be ashamed that they profit off of every gallon of fuel sold, even though they do nothing to produce and distribute it.


28 posted on 03/23/2008 6:46:53 PM PDT by elkfersupper
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To: Conservativegreatgrandma

“This oil crisis can be laid right at the feet of Democrats and their radical environut friends.”

I agree. But it is not much of a crisis. People are lining up to buy gasoline. How much of that is pleasure cruising? Plenty. There is no crisis. Prices are a lot higher than they would be if we opened exploration. But when you have to wait to fill up it cannot be much of a crisis.


29 posted on 03/23/2008 6:47:20 PM PDT by Sunnyflorida (Drill in the Gulf of Mexico/Anwar & we can join OPEC!!! || Write in Thomas Sowell for President.)
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To: Cowboy Bob

“Why is it okay to drill off the coast of California, but not off the coast of Florida?”

That’s OK. The Chinese will be drilling off Florida in Cuba’s waters. We’ll be buying it from them.


30 posted on 03/23/2008 6:49:48 PM PDT by headstamp 2 (Been here before)
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To: infantrywhooah
We only import a fraction of the oil consumed in this country.

True, but it's a big fraction: 2/3 as of last week.

This Week In Petroleum

31 posted on 03/23/2008 6:49:51 PM PDT by CedarDave (John, When will you treat conservatives the way you do fellow senators John, Hillary and Barack?)
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To: Cowboy Bob

It’s perfectly ok to drill off the coast of Florida (if you are far enough out). In fact the Chinese and Cubans are doing it right now.


32 posted on 03/23/2008 6:49:59 PM PDT by Republic of Texas (Socialism Always Fails)
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To: Flavius
ARROGANT oil companies realised they'd "gone too far" and allowed petrol prices to fall over the Easter long weekend, says a leading motoring group. The NRMA claims petrol prices rose between 15 and 20 cents a litre on the Thursday before the Easter long weekend, reaching an average of about $1.50 per litre.

This is crap. Prices went over $100 for non-oil related reasons that didn't have anything to do with what the oil companies did or didn't do and people have known since then that the futures speculation wasn't sustainable and that the prices would fall back toward $80.
33 posted on 03/23/2008 6:52:55 PM PDT by aruanan
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To: Republic of Texas

In fact the Chinese are drilling relatively close. We cannot drill 100 miles out. This time it is “Bushs’ Fault.”

http://www.flmnh.ufl.edu/fish/southflorida/news/drilling2002.html


34 posted on 03/23/2008 6:53:27 PM PDT by Sunnyflorida (Drill in the Gulf of Mexico/Anwar & we can join OPEC!!! || Write in Thomas Sowell for President.)
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To: Sunnyflorida

Occasionally, it really is.


35 posted on 03/23/2008 6:56:56 PM PDT by Republic of Texas (Socialism Always Fails)
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To: atomic_dog
As the Saudi Oil Minister explained, and the US MSM ignored and no one understands anyway, about $20 per barrel is due to speculation on the futures market.

How can the US regulate this?

1.) Raise the margin requirement to 100%.

or

2.) Allow only physical delivery contracts.

Ding, ding, ding, ding ... we have a winner. Regulate the speculators by changing these two rules and the "oil futures" market moves off the casino floor back into reality ... and about 20% - 25% of the spot price will disappear in a month.

36 posted on 03/23/2008 7:00:25 PM PDT by tx_eggman (Privatizing profits and socializing losses is no way to run an economy.)
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To: Sunnyflorida

Yup, you’re correct.


37 posted on 03/23/2008 7:00:28 PM PDT by Conservativegreatgrandma
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To: Conservativegreatgrandma
Here's my tip for pumping gas..
Print out a batch of little stickers that read little factoids like this:

Then, put 'em on the pump. Carry a whole sheet with ya.

Someone's bound to read 'em while their fuel bill is passing fifty bucks per fill up.
38 posted on 03/23/2008 7:05:58 PM PDT by RandallFlagg (Satisfaction was my sin)
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To: Flavius
Oil to stay below $110 a barrel: OPEC Oil to stay below $110 a barrel

They probably expect us to feel grateful.

39 posted on 03/23/2008 7:07:10 PM PDT by Blood of Tyrants (G-d is not a Republican. But Satan is definitely a Democrat.)
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To: infantrywhooah
I am no fan of government getting involved in pricing but it seems like the petroleum industry could stand to see some regulation. Let’s face it, they have us over a barrel (pun intended)

You're an idiot, newbs.

40 posted on 03/23/2008 7:07:19 PM PDT by xjcsa (Has anyone seen my cornballer?)
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