[lelio]

Economics dictates that a commodity cannot be both precious and cheap.

I think you're mixing metaphors. Water's cheap and precious, but precious means "needed to sustain life."

[The_Victor]

I think you're mixing metaphors. Water's cheap and precious, but precious means "needed to sustain life."

The author is the one mixing metaphors. When talking economics precious means valuable, not cherished. Water is a poor comparison since it is cherished as a life requirement. But in economic terms, water is plentiful and not a commodity of significant value. Oil, is not a required to sustain life and is not cherished on such a basis. Therefore the only definition of precious that applies to oil is valuable. Oil cannot be both valuable and cheap.