What do oil companies pay Saudi Arabia for a barrel of oil?

Question

We all know they dont pay market value of $100.00

So what do they pay?

Answer 1

Market value. The oil companies ARE the market. Who did you think pays $100 per barrel of crude oil?

Answer 2

OPEC sets a range they would like to see oil, say between thirty-five and fifty, however they have no say on market forces here. If we were going strictly on a supply and demand scenario I could see oil in the mid to upper forties a barrel. That tells me somebody is making a killing while maybe taking America into a recession with oil being so expensive while being a vital part of so many things. We are headed to another era of robber barons but instead of wealthy individuals we now have faceless entities called multinational corporations that have way to much influence on legislation. Sad part, it's not just the oil industry, it's everywhere, every giant corporation overcharges because they can. I can't even get a person on the phone if I call them, I have to wait and be asked if I want English or Spanish. Where is my country going?

Answer 3

Actually, it's in their monthly contract with the Saudis. The price is allowed to change every month. It is probably over $90.00. Some of the money goes to commodities speculators on the U.S. mercantile exchange. They are similar to real estate flippers, who buy then sell or flip the property for a markup without actually taking possession of the property. We have oil 'flippers' too, who buy oil futures, then flip them for a markup.

The question is, does Exxon own a high share in the companies that own the oil fields, and do they own entities that flip futures on the exchange, in which case Exxon is paying itself!

This is the point to oil privatization, which is a major reason why we're in Iraq right now. Iraq's oil fields were owned by the govt. Bush is pushing Iraq to privatize 80% of its oil fields so oil companies can invest in them.
Most oil producing nations, except for the U.S. (surprise, surprise) nationalize their oil so the revenues can pay for social services.

Answer 4

Oil is purchased using contracts and is based on the quality of the oil. Lt sweet crude from Saudi Arabia would probably trade in the lower to mid eighties because of transportation costs. Its cheaper for a company that wishes to sell gas in the US to buy the oil from domestic producers so they dont have to ship it. In this case, they are probably paying higher. The $100 quoted on the news is for a Dec contract of one barrell of lt sweet crude.

Answer 5

As of today they pay US$95.90 per barrel. Seems you know little if anything of the oil industry.

They pay the same price that you could pay if you knew anything about the commodty markets.

Answer 6

1/2 the price goes to Wall Street Commodity brokers

Answer 7

Saudi Prince is able to have sex with Bush at the family ranch in TX?

Answer 8

That is I'm sure, priviliged information. Hear tell it's about $20.00 though.