Exxon Mobil announces that it will shift focus to "WalMart Style" wholesale pricing. Goldman Sachs follows with new investment strategy
UCAN News
New agreement could tumble oil prices to $26.75 a barrel.
In a move today that shocked the global financial community, the CEO's of two of the world's most powerful companies announced that they would work together to make fossil fuels more affordable for businesses and consumers.
"I've made my pile," Said Rex Tillerson, Chairman and CEO of Exxon Mobil, the world's largest corporation, "and I've decided to give back by implementing a WalMart style pricing strategy for Exxon's fine family of fossil fuels and industrial lubricants."
According to Tillerson, the term "Wal-Mart style pricing" was the idea of Exxon's public relations Vice President, K.P. "Kip" Cohen, who explained that he wanted a name for the program that would accurately convey the depth of Exxon Mobil's committment to cost-based pricing to working people. "People need to understand that XOM is undergoing a trransformative change in its pricing policies. We all felt bad when we saw that six of our favorite U.S. airlines were struggling through bankruptcies all because of high jet fuel prices, so we decide to do something about it."
"Wal-Mart style is a bit of a misnomer," said Tillerson, "It's actually based on Costco's model of a 7% net profit on all transactions. But even a low markup like this isn't enough to bring down global oil prices." That's where Lu-Lu's company, Goldman Sachs, comes in."
Experts in oil production say that ExxonMobil's lifting cost, (the cost to get a barrel of oil out of the ground and to the refinery) are around $25 a barrrel, on average, making ExxonMobil's wholesale oil price after markup equal to about $26.75 a barrel. And that's good news for gasoline buyers.
According to Charles Langley, Oil Analyst and Manager of UCAN's Gas Project at www.fueltracker.com, that could translate into a price at the pump as low as $1.70 a gallon locally.
"As of this morning, oil is trading at about $84 a barrel, which means that the cost of the oil in each gallon of gas is about $1.96. " said Langley. "If Exxon begins selling oil at $27 a barrel, that means the cost of the oil in each gallon of gasoline will be about 60ยข, representing a consumer savings of about $1.30 a gallon for a retail price of about $1.70 a gallon."
According to Langley, theere are 42 gallons of oil in a barrel.
Tillerson who also said that his company would stop shorting its employee pension funds was
Tags: oil prices - NYMEXY - MERC - market gaming - light sweet crude - Goldman Sachs - Exxon Mobil -
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