Oil Companies Can't Manipulate Oil Prices

The law of one price says the same good should sell for the same price all over the world, if a couple things are true. Mainly transaction costs and transportation costs are zero. No US oil company does. The biggest producers like Exxon are still only producing a couple million barrels a day. That would drive up the cost of a barrel. But Severin says it wouldn't be worth it for US oil companies to do that because they frankly don't make enough oil to withhold some.