Quote:
Originally Posted by strupgolf
I've heard it before. There will be a way for the companies to keep prices high even though demand has fallen, and keeps falling. I cant understand it
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The oil companies don't control the price. Take off your tin foil hat. If they did control the price do you really think they'd let it get to this point where they are losing money on every gallon produced?
If they lose too much money for too long they'll start shutting down refineries. That reduces supply to a certain extent and that is the only way they can influence price.
BTW they would only keep them shut down until prices rose back up to the break even level, then they'd start them back up. An idle refinery goes bad in a big hurry.