Thread

When oil prices spike, where does the money go?

171 points · 195 comments · thelastgallon

kleiba2 · 1790749655 · focus · HN ↗
Spoiler alert: "But ultimately, the bulk of the money heads in the direction of the source of the oil itself – the oil companies. [...] The money largely goes to company owners – meaning shareholders"
1. kakacik · 1790758064 · focus · HN ↗
  Thats why OPEC exists, no? To manipulate markets for biggest possible profit for oil owners. They are not even hiding it in any way. While everybody else is on the paying side.
  1. pjc50 · 1790758448 · focus · HN ↗
    OPEC are a bit of a dead letter. Two of the key members (Iran and Saudi) are at war with each other!
    If anything prices are being kept artificially _low_ by the US withdrawing from the strategic petroleum reserve, and similar (unquantified) actions being taken by the Chinese government. We'll have to see how the situation changes after the US midterms.
    someonebaggy · 1790772044 · focus · HN ↗
    The strategic petroleum reserve which is empty, and threatening to physically collapse as they withdraw the sludge below the 0% mark?
    boringg · 1790777318 · focus · HN ↗
    You mean at 50% drawdown? Easy on the hyperbole.
    someonebaggy · 1790853819 · focus · HN ↗
    Why do you think it's only 50%?

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