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Originally Posted by gales0678
demand has increased i don't have the exact figures, but, take a look at a chart between the usd and the px of a barrell of oil, seems to me that as the dollar drops as it has been for the last number of years the per barrell price of oil has increased - there is a direct corelation to a weak dollar leading to higher oil prices - when the foreigners sell us there oil they get paid in usd. if the usd is falling the only way to cover their losses on the usd is to raise the prices per barrell that with demanded outpacing supply pushes the price higher -
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The thread is about record oil company profits? O.K....The reason there are record oil company profits is because they don't have to compete for your business.They all agree to keep the price as high as possible.It's not like airfares where you have airlines competing for your business.Whatever the price of gas should be (based on competition in the market place) will not be known until this problem is tackled.There are a lot of things brought up here to explain why the price of gas is high.The price of gas is one thing,and the profits of oil companies is another.The latter will always be very high if they don't have to compete.I can live with high gas prices,but I am tired of the lack of competition that exists between a limited # of oil companies in this country.We refuse to make them compete with each other.With that fact,how can there ever be anything but huge oil company profits? It will remain huge until there is competition involved in the pricing of gasoline.This is not hard to understand.You will never ever know the price you actually should be paying for gas until you have free-market competition involved in the pricing of gas.Maybe it should be $4 $3 $2.75 ,or whatever,but you won't know until competition is involved.All you have to do is compare it to the airline industry.If you have free market competition,then you will be able to "shop" for the price you pay to fly somewhere.Try flying to Cincy sometime.Guess what? It's outrageously high to fly into there(or it was last year.)Why? No competition.Delta has a monopoly.Is it still this way,Cannon?