2006-07-14 10:12:45 · 2 answers · asked by dice1947 1 in Cars & Transportation ➔ Other - Cars & Transportation
Supply and demand - fundamental principles of economics.
If the price of a barrel in 30 days is $78/barrel, why would I sell that barrel today at $70/barrel when I could just hold onto it for 30 days and pocket another $8 profit?
And believe me, that is an incredible oversimplification of the energy market. A better explanation is merely that demand has nothing to do with last month's pricing. Demand is a function of people's desires today and that obviously set the price at $2.69/gal.
More fundamental is the question of where are we going to get tomorrow's energy from? And what will it cost?
2006-07-14 11:47:47 · answer #1 · answered by TheSlayor 5 · 0⤊ 0⤋
F-E-A-R
2006-07-14 10:15:47 · answer #2 · answered by JeffyB 7 · 0⤊ 0⤋