Who pays the per barrel price of oil?

For instance, when you hear that price of oil is 0 per barrel today, who is paying that price? Aren’t the oil companies the ones doing the drilling and refining it into gasoline and whatever else? Does it ever really leave their hands until it’s sold to independent gas stations or to consumers at their gas stations? I suppose they have to pay the countries they are drilling in for the privilege of taking their oil, so maybe that’s where the price per barrel factors in? Is that how much they have to pay for each barrel of oil they pull out of the ground? But I wouldn’t think it would work that way. I guess I’m just trying to understand the economics of the oil industry and what exactly it means when you hear the price per barrel.

3 Responses to “Who pays the per barrel price of oil?”

  1. Anjaree Says:

    The price of crude oil is quoted mostly at the London market. There are two categories, FOB and CIF.It is the price that the refineries will pay.In the future market, it is mostly finished product. The price is quoted at the main refinery market in the region. For example, in Asia the price of petroleum products is quoted at Singapore market.

  2. Dave B Says:

    Look up commodity futures contract settlement when you get a chance. That is what the futures contract buyer will pay for delivery at the place and in the form the standardized futures contract states.

  3. Shalow Unresonable Deductions Says:

    That’s price is determined by oil traders who speculate in the Futures market.