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A Fox Business alert nymex crude.
Barely moving today settling at 94 dollars 95 stance the sense still that is down sixteen point 7% from its recent high of a month and a half ago.
In the meantime AAA telling us at the national average price for a gallon of regular gasoline is now three dollars 69 cents.
Down seven and a half percent from its high in 2011 of 399.
How many times we asked this question so why is the drop in gas prices just half -- the percentage drop in oil prices are we ripped off.
Let's ask Andy -- values president what our oil associates.
And we have to go through this regular because we get more email -- about this subject and any others.
Bill O'Reilly goes on screaming rants about it say it's all -- -- -- -- -- the oil companies what do you say.
-- -- -- let's talk about that you're right oil prices here are down 17%.
And that represents about a third of the oil that we consume in the refineries.
The other two thirds is coming from offshore and those prices are actually only off 9% since the beginning of may.
Now on the gasoline side yes they have been coming down slower because.
As -- as we know the oil majors since 2008.
Have been divesting themselves of their -- tell assets.
So now the individual businessman is the one who's controlling the price to the retailer.
I'll consider you're telling him the guy at the mini mart is the one now in control not the CEO of ExxonMobil or Chevron.
Exactly so let me give you some examples ConocoPhillips.
Has no retail stations they own nothing.
Exxon as you cross around the country they have about 121000 service stations that we say fly the Exxon flag.
Of those 121000 service stations.
They own themselves maybe a couple of hundred.
BP they fly the flag at about 111000 stations they've been divesting themselves -- every bit of their retail outlets.
So we have the futures price the wholesale price and the -- price.
The oil companies have -- -- reducing their wholesale price and guess what the retailers have been slow to pass that onto the consumer.
But is there -- no advantage for retailers to have some kind of connection with the oil companies -- at least a refineries.
Well be -- the retailers their connection is they get security of supply but once again they're paying.
The whole -- price.
That's a number of places around the country which we call on branded.
That they just go by in the spot market every day and you can see that their prices are much cheaper than that the say.
The the regular major oil companies if you go to -- costs go work Kroger you'll see that prices are generally less than a major oil company.
Andy how about us -- -- we should let people know Citgo is actually of Venezuelan operation Venezuelan government around at at or say for example lukoil which is Russian.
Well okay -- go and clearly that refineries are on by PD PSA but like the other major oil companies that most of the Citgo stations are -- by the local businessman.
Lukoil is a company that has no refining assets here in the US.
They are just out there buying gasoline on the spot market crash and putting it through their terminals and racks to the hole itself the wholesaler and retailer tell -- -- to be mad at Andy and kidney and -- what -- sitting at a well you know I know people want to be mad at the big bad major oil companies but in this instance you've really.
Have to recognize the business has shifted and the pricing power if you will has moved to the local businessman who's trying to make some money.
And -- -- crowd thank you very much candy good to see again appreciate it we'll tell Bill O'Reilly.
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