Michael Feltham wrote the following comment in response to:

Axis of Logic. World News
Exxon Mobil profits increase 53%

The reason major oil and gas corporations make supra-profits at the same time as crude oil prices rise is simply because they are screwing the consumer; shamelessly.

With the complicit and tacit assistance of major Western governments.

The actual price a major pays for their crude doesn't actually rise in lockstep with Spot Prices (And it is always the Spot Price published by mainstream media).

Majors enjoy not only fixed price lifting contracts (Lifting simply means taking and loading oil at terminals), they also have huge amounts of crude at sea in tankers: in storage awaiting refining; refined "product" in tankage; in pipe lines and in tankage at filling stations. Plus refined product contracted already from third party refiners, at an earlier agreed price.

Majors with large exploration contracts with producer state governments once again have contracted prices for crude oil lifted (Royalties).
The crude price rises: midnight the very same day, the retail pump prices are hiked.

It is sheer venal exploitation. Nothing more and nothing less.
If one examines any of the major's published accounts for a period when crude oil spot market prices escalate rapidly, then there is always a sympathetic profit increase reported.

Mainly since the major's Cost Base remains identical.

Any business which could overnight increase their sales prices when their buying prices and overhead remained the same would record supra-profits!

- Michael Feltham, FCEA, ACPA, FSPA