“Are gas prices dropping like a stone yet?”
Energy prices are set by futures contracts months in advance. Most of the gas you are buying today was priced months ago. If this wasn’t the system, energy pricing would constantly jump all over the place, making it impossible for businesses to plan ahead.
Thank you for that. I've never understood why gasoline, diesel, natural gas fluctuate so much. Like most laymen, I always figure the cost was set by how much is readily available on the world market. What is the reasoning behind futures contracts and who controls it?