.the quality of the Standard Oil's
operations and its efficient methods to get the lowest price from its suppliers and from
the railroads made it the lowest cost refiner in the world. This allowed the company to
launch a price war on a given market (a city or a whole region) to wipe out all the
competitors.
The Standard thus regularly lowered its prices in a given area to eradicate a smaller
competitor, who could not resist selling at loss for long enough.
But if this strategy was often used, globally the idea was to maintain price as high as
possible to insure a steady, high profit, but not too high. As already mentioned,
too high prices would have attracted new competitors, and prices fluctuating with
crude oil production would have attracted the general public's attention on what made the
price what it was.