ExxonMobil CEO Says Oil Price Should Be $60 To $70 A Barrel

From Forbes: “Rex Tillerson, the boss of ExxonMobil admitted last week that  the price of oil–based purely on supply and demand- should be in the $60 to $70 a barrel range. The reason it’s above $100 a barrel, Tillerson  explained, is due to the oil majors using futures contracts to lock in current high prices, and speculation that is engineered by the high-frequency trading of quantitative hedge funds.”

Of course, they also won’t admit that the subsidies they receive are helping them to record high profits either. Anyways, it’s probably best not to read that Forbes article, since it’s Monday and Mondays always suck, and you probably don’t want to do anything to worsen this day.

But, just know this — it costs $11 to produce one barrel of oil, which now sells for between $90 and $120 per barrel. The “intangible drilling expenses” subsidies for the oil industry were given to them back in 1960 when a barrel of oil sold between $15-$17. And yet, the industry still claims that if the U.S. government takes those subsidies away it will cripple their industry.

Try telling all of that with a straight face to the single mother who just filled up her gas tank for $50 (or more).

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