4 ms·

Oil prices has been swinging between 60-100 for the last 10 years. I think it's oil refineries are using OPEC excuse to increase the price. The USA drills as m

• htss2013 3y ago
  Why would oil refineries do that? Unless they are all acting as a cartel to fix prices, it would be obvious that some are more expensive than others for no reason. Price fixing doesn't work with price competition. If they are acting as a cartel and coordinating among every refinery, how do you keep that hidden? You can't and the reward isn't worth being screwed by antitrust and all other backlash when you get caught.
• nradov 3y ago
  Obviously petrochemical refineries are going set prices to maximize profits. They don't need any excuse to do that. In the US, existing refineries have significant pricing power because environmental laws have made it nearly impossible to build new ones. The issue is compounded in California by idiotic state laws that mandate a unique blend of gasoline only produced by a handful of refineries. This ends up being effectively a direct wealth transfer from consumers to refinery owners without even achieving any significant environment benefits.