Current Events — HabitableZone

Current Events » in reply to supply and demand

Oil futures

In the economic system, prices are often set by what people think they're going to be dealing with, not what's actually happening. Why do you think the price of oil futures gyrates with every hiccup that happens in the world?

Right now refinery capacity and gasoline distribution regulations are a larger factor than simple supply of crude. There are reasons we are having problems in that area.

From June, 2004.

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