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Originally Posted by Donger
The price goes up immediately because the retailers are considering what their replacement costs are going to be. They have to anticipate what that is going to be. For example, if the price of crude is going up and their next shipment needs to be purchased next week, they will start raising their prices in order to not lose money. They often don't raise it enough and actually lose money. Therefore, they try to make some back when prices drop by not dropping their prices as fast.
It all revolves around the price of crude, something that the oil companies do not control. They benefit from high crude prices, however.
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I can partially understand what you said but what kills any credibility regarding that is the fact regarding the excessive, or obscene, profits they have seen over the past year. With the profits margin over the expected profits they can pay for a new refinery with the money they made from that one quarter. $39 B is one hefty excessive profit. Granted the upper management probably got $15 B to share.
