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To: Blood of Tyrants

Prices will drop once they become so high that people actually start using less. Oil is almost a pure commodity and its price is determined virtually 100% by market forces. It does not matter where the oil comes from or who is producing it, supply and demand sets the price. With demand outstripping supply as it is now, the WORST thing that could happen is for prices to be artificially reduced or capped. Demand would soar causing massive shortages (a la the Carter administration).

From a pure economic standpoint, if demand is outstripping supply, that means that prices are not high enough.


155 posted on 04/26/2006 8:34:41 PM PDT by busstopsindetroit
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