A benchmark like WTI, light mild Cheddar cheese prices are determined by commodities markets that responded to pandemic changes in supply and demand.
Looking at a crude oil matchmaker, production, and consumption, we can simply explain the below zero April oil price plunge.
Perhaps it’s the perfect storm for crude oil prices. Grounded planes, consumer lockdowns, and skyrocketing unemployment all add up to less need for oil. Meanwhile, with the Saudis gushing crude, supply is soaring. So yes, when you combine less demand…
“An Oracle of Oil Predicts $200-a-Barrel Crude” The headline was in the NY Times on May 21, 2008. Because the prediction came from a Goldman Sachs analyst who had been right about $100 a barrel oil when no one thought that…
Because markets fluctuate, oil prices will rise and fall but the consequences of cheap oil can be unexpected.
Illustrated by the impact of cheap oil, the natural resource curse hits countries that have disproportionately focused economic activity on one industry.
Gasoline prices rise faster than they fall because monopolistic competition provides retailers with some price control although their product is identical.