What is the basis for oil pricing?

IF WE GET OUR OIL FROM OTHER COUNTRIES WHY ARE WE BEING REMINDED DAILY THAT IRAN IS SELLING IT FOR $68 DOLLARS A BARREL DOWN FROM $75. IS IRAN SETTING THE PRICES FOR OIL? IF THIS IS NOT EFFECTING OUR ECONOMY AS SO MANY THINK WHAT IS THIS ALL ABOUT?What is the basis for oil pricing?
silly little children. no, the price of oil is USUALLY based upon supply and demand, but not today. the oil companies have no say in the price of oil either. it is traded openly on the new york mercantile, just like every other commodity. the price is set by what ever the oil traders on the floor are willing to bid for it. problem is, new york is full of pussys these days. morons who never really qualified for college, and never had as much as a fist fight in their pathetic lives. they know nothing of economics. they simply panic every time someone in the gulf farts, and they bid up the price of oil for no other reason than they have been frightened. as the mess with iran cools down, the price of oil will continue to fal until it hits the mid thirties, where it belongsWhat is the basis for oil pricing?
Whatever OPEC wants it to cost.
whatever the oil companies want.





can u imagine getting a $400 million USD bonus in 1 year. stop imagining! an un-named US Oil Company CEO got it last year.





strange thing is, he says pubicly he doesn't know how his company made so much money... hmmm, gouging the public, u think?
Supply and demand.
The price is determined as much by demand as it is by supply. Environmental factors also play a role. If there's a perceived additional security threat on supply pipelines then the price will go up. If people think that Iran is going to be able to process weapons grade uranium count that as votes to bid prices up, and so on...





Disclaimer: I am not an oil expert, or an economist...
An economics teacher once described it this way.





How much demand would there be if the price of a Rolls-Royce was fixed at $1,000? The demand would be nearly unlimited because everybody would want one at that price.





Now, how many cars do you think R-R would actually build at that price? (Hint: it's less than 1.)





Next questions:


How many cars would R-R want to produce if they could sell them for $1,000,000, each?


Now how many buyers would there actually be?


(Hint: not very many)








That's the law of supply and demand. The market price is the price that sellers and buyers agree to.





If oil were priced at $100 / bbl, then demand would substantially decrease, until suppliers cut prices to what people wanted to pay.





Oil prices are set on a minute by minute basis, and the price can be changed from one oil tanker-full to the next. It is very possible that an oil tanker's contents can be sold and resold many times between loading and unloading.
Supply and demand.
Supply and Demand. simple as that.
GREED!