It’s earnings season, and with ExxonMobil and Chevron posting big profits, that can only mean one thing. They are once again being blamed for gouging consumers and for causing inflation. As I have argued before, such thinking reveals a massive misunderstanding of economics. Oil prices are set on exchanges based on short term expectations about supply and demand. Neither ExxonMobil nor Chevron can move the needle much on supply, and demand is determined by consumers. Thus, these companies have practically no effect on prices. It is true that…
