Brian H
2008-07-10 19:20:51
Oil prices:
For those who didn’t do Econ 101 —
The price “at the margin” (when supplies are tight, the NEXT purchases that need to be made) controls overall pricing.
When there is some slack at the margin, neither speculators nor demand will drive prices up. That’s why even the strong possibility of new supply coming on stream in the foreseeable (buyable) future affects pricing right now.
