Question About the Price of Oil

[Capitalist Lawyer]

The theory, as it is being explained to me... is that since the oil industry is an oligopoly or even monopoly, they can charge whatever they want for oil/gas and we're at their mercy. They are virtually in control of us.

Now... the facts show that the oil industry's return on investment has been less than 20% SINCE the gas and oil prices dramatically rose starting in the late 90's. Before that, it was less than 10%.

My question is... if the oil company's are in control... why didn't they charge the big money to get the big profits BEFORE the late 90's?

[JazzRemington]

There was probably extenuation circumstances that kept the price of oil down generally during that time, like contracts and agreements. But I'm not 100% sure, oil economics isn't my field of expertise.

[Bud Struggle]

It's not the oil companies, it's the oil speculators. The problem is in the derivatives markets not the oil markets.