# Why oil company profits are good

**URL:** <https://forums.speedlife.net/t/why-oil-company-profits-are-good/37930>\
**Category:** NYSpeed Off Topic\
**Created:** [October 31, 2007, 11:02am UTC](https://forums.speedlife.net/t/why-oil-company-profits-are-good/37930 "2007-10-31T11:02:29Z")\
**Posts on this page:** 1\
**Showing post:** 18

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**Author:** ![JEG](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jeg/32/7246_2.png) [@JEG](https://forums.speedlife.net/u/JEG)\
**Post date:** [November 1, 2007, 5:54am UTC](https://forums.speedlife.net/t/why-oil-company-profits-are-good/37930/18 "2007-11-01T05:54:22Z")

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The price of oil is going up because it’s a future demand market. The demand/supply of oil hasn’t really changed. Say company X wants a garunteed 1 billion barrels of oil, and company Y wants the same amount, well now they are competing for the same product. So say company X offers $90 a barrel for the oil, and company Y then offers $91/barrel. The more they spend to secure their supply, the more it comes back to the consumer.

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