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Old 07-28-2006, 08:17 AM
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I'm not sure why anyone would be surprised that oil companies are making record profits at a time when oil prices are at record highs.

Oil is a commodity. There are other factors that can affect the retail price of oil products such as gasoline -- taxes, refining bottlenecks, transportation bottlenecks -- but those either don't affect profits (taxes) or aren't something an oil company would generally seek to do. Bottleneck-induced shortages might generate higher short-term profits (it depends on whether the increased price offsets the lower sales volume), but at a minimum it undercuts long-term demand by prompting people to seek alternatives.
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