Just when the price of oil falls below $ 40 a barrel. It’s lowest level in years. All of a sudden there is an explosion of violence in the Middle East, Russia shuts off gas to Ukraine, and OPEC cuts production.
Instant 20% jump in oil prices … I think the Oil companies have a hand in it.
Ummm, I’m going to have to go with no on that one.
Let me educate you: OPEC is a cartel, they have the ability to effect price worldwide and sometimes do, but they are still subject to the laws of supply and demand.
When we here in the United States enter into a recession, Wall Street stops speculating the price of oil, and demand begins to fall. You have what we have today: oil trading under $50 a barrel.
It’s all supply and demand, nothing more.
February 25th, 2010 at 1:25 pm
Ummm, I’m going to have to go with no on that one.
Let me educate you: OPEC is a cartel, they have the ability to effect price worldwide and sometimes do, but they are still subject to the laws of supply and demand.
When we here in the United States enter into a recession, Wall Street stops speculating the price of oil, and demand begins to fall. You have what we have today: oil trading under $50 a barrel.
It’s all supply and demand, nothing more.
References :
I’m an economist.