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Huh? No they make more money by restricting supply, that's what I'm saying. Not drilling and not refining let's them jack up prices while blaming inflation
by feet 4y ago
Huh? No they make more money by restricting supply, that's what I'm saying.
Not drilling and not refining let's them jack up prices while blaming inflation
- pc86 4y agoThis doesn't make sense at the micro level though. You have (let's say) half a dozen oil companies all producing roughly x BBL for $y/BBL. What's to stop Company A, who has the means to do so already, from simply producing 1.1x BBL and keeping its price at $y? At a macro level yes, if everyone increases supply 10% you'll see some price fluctuation, but that doesn't necessarily hold for an individual, self-interested company. Hell, that company could produce 10% more but sell it for $y-0.05 and presumably make more money selling for cheaper.
- feet 4y agoHave you listened to the earnings calls?