As us financial sophisticate know, the method of accounting used by oil companies means that when prices are rising then so do their profits.
However, when prices fall so do those profits.
So, come the announcement of next quarter’s results and the drop in profits, possibly even reports of a loss, will all those currently shouting about how BP must cut forecourt prices then be arguing that, you know, they really ought to be raising them?
1 response so far ↓
1 Cleanthes // Oct 29, 2008 at 6:15 pm
No.
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