Could the American oil company's sell their crude oil to American refineries at lower?

then market prices? right now a barrel of crude oil is about 89.00 on the market, could a oil co. sell oil that was drilled on U.S. soil too local refineries in the U.S. for say 65.00 a barrel, they would still make money, right?

One Response to “Could the American oil company's sell their crude oil to American refineries at lower?”

  1. Michelle Says:

    The price of crude oil is set by the markets. One oil company on its own would not be allowed to buck this system.

    But to answer your question, yes they would still make money.

    However the price per barrel of oil is only one factor that determines the price of gas at the pumps.

    The major factor is the tax governments around the world charge.

    If you take the UK as an example, the price per gallon of gas is now at about $10 per gallon. *Gulp* Yes I did say TEN US Dollars a gallon.

    70% of that price is what the UK Government add to the price of gas. So the Government get $7 a gallon in (what we call Petrol), petrol tax, and VAT at 20% on top of this.

    If you think gas prices are high in the US, you should try buying some in the UK, its painful every time you fill up.