Reply #13: Big Oil Negotiates contracts to pump oil in fields foreign and domestic [View All]

[puerco-bellies]

It transports that oil via it's own transportation network. It refines the oil in it's own refineries to products and sells those products in it's own franchises. The energy pits on the NYMerc trade oil and other futures that are written on contracts of petroleum in the transportation pipeline. The contracts cover a tiny percentage of the total oil/petroleum produced and or used in this country.

The pits are used as a pricing mechanism which is completely open to manipulation by the suppliers in a monopolized market. These pits are a secondary point of price manipulation from big oil, the first being the strangle hold of supply and influence of demand via influence in the adaptation of public transportation, American auto manufactures, i.e. electric/hybred technology.

The pits primary function is to protect secondary consumers of petro-products from even greater swings in pricing. By utilizing futures a company can "lock-in" pricing and allow a company to project energy costs to a greater degree than otherwise possible.

It's Big Oil that controls the pricing, period.