Gas prices outpace cost of oil Refiners expect record profits....

[sabra]

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/04/27/REFINERS.TMP

Gas prices outpace cost of oil
Refiners expect record profits as their competition dwindles

High crude oil prices aren't the only reason you're paying $3.15 for a gallon of regular.

For America's giant gasoline refiners -- some of whom are expected to report multibillion-dollar profits this week -- this is a golden age.

By California state estimates, refinery profit margins have more than doubled in 2006, though that figure doesn't take into account some key expenses. Meanwhile, oil prices have risen by 14 percent.

Earlier this week, Valero Energy Corp., the country's largest refiner, reported the highest first-quarter profits in its history, $849 million, up 60 percent from the same period last year. The company's top executive credited the jump, in part, to record profit margins that he cheerfully predicted would last through the summer.

...

Oil industry critics hunting for proof of price gouging point to refineries' expanding profit margins as evidence. Oil companies, they say, can control the price they charge for refined gasoline far more than they can influence the price of crude. Whereas crude oil prices are set by a global market, the market for refined fuel tends to be more local, with more limited supplies. That narrows the competition refiners face and gives them more leeway in what they can charge.

[Callalily]

1. EXPECT record

profits?

Their profits have been obscene!

[Roland99]

2. "Cheerfully predicted"

:mad:

[Robb]

3. Meanwhile, at the hair salon

...I overheard analysis. :)

"Well, I think we're just using up other people's oil before we use up ours, so it's going to cost a little more for a spell."

We have intentionally never explained this market to the population. EVER. And we still don't. :banghead:

[gasperc]

4. yeah, we'll all cheer when the economy snaps

what fucking ratbastard asses

[Cobalt Violet]

5. Just keep on pushing us.

It's coming to a head.

[BootinUp]

6. There were stories from last couple weeks that say the opposite

There is so much disinformation floating around, I'd have to do my own study to dig through the bullshit! :grr: