Some time ago I predicted the oil companies would purposefully reduce their margins for the July-September quarter this year as results will be posted just weeks before the November election. It wouldn’t do to have another record quarter, sending outraged voters to the polls with regime change on their minds.
Recent data shows oil prices near $60 a barrel, down 23% from the July high of $78. My local gas prices are now $2.25 a gallon, down from $3.10. This drop is over 27%. Someone’s margins have taken a hit. Is it the producers’, refiners’ or retailers’?
They’ll still post a heft profit, it just won’t be near a record. Bush’s approval ratings have risen relative to only one statistic, the decline of gas prices. None of his signature efforts, Iraq, health care, taxes have gone up in popularity.
Once the corporate insiders manipulate public opinion to get a Republican Congress re-elected, “katy bar the door” on oil and gas prices, especially if America or its proxy bombs Iranian nuclear facilities. Those predictions of $100 a barrel oil may come roaring back and with it the oils' profit margins.
No comments:
Post a Comment