It was a bleak day for capitalism, and further proof that supply and demand were not the only, or even the primary, forces driving the price of fuel.
It was a bleak day for capitalism, and further proof that supply and demand were not the only, or even the primary, forces driving the price of fuel.
Yep... Greenspan testified that prices were decoupled from supply and demand a while back. This heist will make Enron look like peanuts. The folks who are celebrating now don't even realize they are still paying a hefty fear premium.
"It was a bleak day for capitalism, and further proof that supply and demand were not the only, or even the primary, forces driving the price of fuel.
If speculators are buying oil, that's not demand?
Of course it is. They're paying out hard cash for it, just like those who propose to use it immediately.
re: supply and demand were not the only, or even the primary, forces driving the price of fuel.
It's still supply and demand, the difference being that in this case they are betting on the demand at some point in the future. It is not the actual supply that controls costs in the supply and demand scenario, but rather the perception of demand.
Supply and demand related to economic pricing is not the same as production and consumption. It is the curve of price versus quantity that sellers will produce and buyers will pay at given market conditions. Regardless if that buyer is a refinery, a storage tank operator or a futures trader, that is all part of the demand for the commodity.