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Is oil pricing itself out of the market?
Date:8/19/2011

when gas prices went above $1.20 per litre- and suddenly 50 per cent of the market dropped out of the gasoline market, you could expect refiner margins, retail margins, everything, to go through the floor.

"The retailers would know that, 'if I increase my margin by $.10, I'm going to lose 50 per cent of my customers because they're all going to be on the LRT, on their bikes or they're going to be walking.' Even in the short term, it's going to force the producers to eat that world oil price increase."


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Contact: Jamie Hanlon
jamie.hanlon@ualberta.ca
780-492-9214
University of Alberta
Source:Eurekalert

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