10 little known – or often ignored – facts about gas prices and ExxonMobil’s earnings

[Wry Catcher]

Article is from the Houston Chronicle dated 10/26/2011:

10 little known

So, Newt promises to cut gas costs to under $2.50 a gallon and Romney blames Obama for the cost of gas. In this blog we read Exxon-Mobil's perspective which seems to offer evidence that this entire blame Obama game is one more political canard.

 

[uscitizen]

I repeat. Anyone who promises $2.50 or less gas is either a fool or liar.
Or both.

 

[Wry Catcher]

Or a demagogue.

From the link:

"Crude oil prices are largely determined by global markets. As I’ve said before, crude oil is one of a number of globally traded commodities like gold, corn, coffee and many others. The prices of such commodities are set in worldwide markets comprised of millions of buyers and sellers reacting to economic fundamentals for each commodity."

Global Oil Price Factors | ExxonMobil's Perspectives Blog

 

[Ernie S.]

I repeat. Anyone who promises $2.50 or less gas is either a fool or liar.
Or both.

Promise may be out of the question, but the cyclic nature of gas prices would indicate a strong possibility.

 

[CaughtInTheMid]

many people want to nationalize our oil industry and either don't know what they're asking or don't care.

 

[Wry Catcher]

many people want to nationalize our oil industry and either don't know what they're asking or don't care.

Isn't most of the crude produced in the world controlled by national (country owned) oil companies?

When supply is limited for political reasons or to keep the price high markets are not free. Price 'fixing' is a product of cartels and not markets.

Since oil is sold on the global market how can drilling in the United States lower prices here?

 

[FuelRod]

Article is from the Houston Chronicle dated 10/26/2011:

10 little known

So, Newt promises to cut gas costs to under $2.50 a gallon and Romney blames Obama for the cost of gas. In this blog we read Exxon-Mobil's perspective which seems to offer evidence that this entire blame Obama game is one more political canard.

Interesting these perspectives were not offered 4 years ago.

 

[Mr Natural]

I repeat. Anyone who promises $2.50 or less gas is either a fool or liar.
Or both.

And anyone who believes that promise is either a political hack or a dunce.

Or both.

 

[Wry Catcher]

I repeat. Anyone who promises $2.50 or less gas is either a fool or liar.
Or both.

And anyone who believes that promise is either a political hack or a dunce.

Or both.

And anyone who blames Obama for the price of gas at the pump is both.

 

[waltky]

Low oil price hits ExxonMobil profits...

ExxonMobil and Chevron profits slide on low oil prices
Fri, 29 Apr 2016 - Oil giant Exxon Mobil reports a 63% slide in first quarter profits following low crude prices, while rival Chevron slumps to a $725m loss.

ExxonMobil reported a 63% slide in first quarter profits following low crude oil prices and weak refining margins. It reported a profit of $1.8bn (£1.24bn), a sharp decline from $4.94bn for the same period last year and its lowest quarterly profit since 1999. Revenue dropped 28% to $48.7bn, but it had strong results from its petrochemicals division. Rival Chevron faired even worse, with a quarterly net loss of $725m. That compared with a net profit of $2.57bn for the same period in 2015 and was worse than analysts had expected. John Watson, Chevron chief executive, said: "We are controlling our spend and getting key projects under construction online, which will boost revenue."

Shares in ExxonMobil rose 1.4% in New York on Friday, while Chevron fell 0.6%. Meanwhile, oil prices hit their highest levels of the year on Friday, driven up by lower US production and a weak dollar. Brent crude was up 12 cents at $48.26 a barrel in afternoon trading, while US oil rose 57 cents to $46.60. US oil production has continued to fall in recent months, easing concerns about oversupply, while the dollar has lost almost 2% of its value against other global currencies in the past week. A weaker US dollar typically contributes to a rise in oil prices, because oil is priced in dollars. When the dollar weakens against other currencies, oil becomes cheaper to buy, pushing up demand.

Production rise

However, the latest rise in oil prices may be limited by a future increase in Middle East production, according to a note released by Deutsche Bank. Iraq and the UAE are likely to raise production after maintenance issues are resolved, Deutsche indicated, and Saudi Arabia may also increase production significantly. "A sustainable rise in Opec production may be just around the corner, and... the rally may pause," Deutsche analysts said.

But this may be tempered by events in Latin America, where Venezuela is struggling to maintain its crude output, according to a report from Eurasia Group. The organisation reported that low oil prices over the past two years have meant Venezuela's government is running out of cash to keep its state-owned oil pumps operational. Hamza Khan, senior commodity strategist at ING, said: "The issue is that we haven't seen price rallies ... correlate with fundamentals. The fundamentals - high stocks, high production - haven't changed."

Price dynamics

 

[elektra]

The Governments greatest source of revenue is Oil.

Face it folks, Oil is life, without it all else dies. First to die will be Solar and Wind, one can say Solar and Wind increase the use of Oil, hence bringing about our decline all that much sooner.

To save the World, we must destroy it.