how do the oil companies make record profits if input costs are rising?

Discussion in 'Trading' started by dsq, May 23, 2008.

  1. Valero sold their Aruba refinery because it doesn't suit their forecast - it was set up to process the kind of crude that they don't believe will be most profitable to do so going forward.

    Whether that was a smart decision or not, only time will tell.

    Valero is a well run company, but not infallible.

    It's very difficult for non-integrated refiners to make confident decision about utilization and other such matters at the current time. I don't think this period of great uncertainty will last much longer, however.
     
    #11     May 24, 2008
  2. It'd still be a 'free market'. Just a free market with a permanently high gas tax. Like I said, prices would still be free to move up and down.

     
    #12     May 24, 2008
  3. loik

    loik

    Taxes intereferes with the free market.
     
    #13     May 24, 2008