Thanks. You got it. The value of something is what a willing buyer and seller agree on. The trading of commodities creates buyers willing to pay prices based on their assessment of present conditions (e.g., war) and of future developments (e.g., expected embargos).
Sometimes houses in your example are bid up way beyond a sustainable price level. There are folks in my area who have spent $700,000 for condos in a development that is now cutting the price to $625,000 or less. You could assert that the earlier folks got the better units, maybe. But the automatic value increase they were anticipating has evaporated for a while. There is a psychology also in commodity trading and oil will likely back off from its heights.
I have a few stocks I've purchased in my retirement account that have increased significantly in value. Some of those that have risen to new heights I have sold. I did not sell at my purchase price. Similarly I have gotten out of stocks that were dogs. Despite what I paid for them I sold for lower prices.
Most of us are not willing buyers...We have no choice...The competition has been bought off...This is not a free market situation and no, I don't support it...