If an oil company pumps its own oil, why does the market price for a barrel of oil affect the gas price?

I've read articles that say supply and demand are NOT the major drivers for today's high oil price. It's oil futures trading on unregulated markets and massive speculation in these markets.

4 Responses to “If an oil company pumps its own oil, why does the market price for a barrel of oil affect the gas price?”

  1. Judge Sludge says: Says:

    They will price their product at the highest price they can, using whatever method and reasoning for such…
    The profit margins of these oil companies should tell you who is responsible for the prices…
    Exxon Mobil posted over 6 Billion in quaterly profits?… I think the real bastards are exposed right in those figures…
    The greed and the raping of the people of this country are being perpetrated by the Oil Companies… The rest is just an entity to point the finger at….

  2. Leandra M Says:

    I am pretty sure that the high price of gas, are partially due to competition of the various gas comp. such as shell, mobile, and so on…Hope this helped some "]

  3. djapana2000 Says:

    when it cost them X amount to get Y amount of barrels from the east, it cost you Z amount for the fuel. When they spend A amount to buy oil from country B and it cost amount C to ship it to your petrol station, the amount D is different. It all depends where the oil comes from, how much it costs oil companies to get it to the refinery, and how it is delivered in the fuel form you use in your vehicle…

  4. Mitch Says:

    You have asked a very good question. All oil companies will use the "market price" in order to determine the cost of the product during the various stages of production, transportation, refining and distribution. They will use the NYMEX futures prices to value their products or a value reported by Platts or Opis. The NYMEX price is heavily influenced by spec and index traders and is in some sense artificial. How can an oil facility in the middle of US (Cushing) determine the price of oil for the rest of the world?