Saturday, December 26, 2009

Can you explain supply and demand argument vs. oil bubble in a simple way?

Can you help me understand both arguments. Who is right?Can you explain supply and demand argument vs. oil bubble in a simple way?
Many are to blame for our current predicament. The oil companies have chosen not to build enough refineries to meet demand, so they can artificially manipulate the price.





Speculators in oil futures can continue to drive up the price because everyone in the oil business is convinced that the American public will tolerate gasoline prices until they reach the seven or eight dollar level. At that price, the consumer will revolt. But, until then, the profits will continue to soar for both the oil companies and the speculators.





And, a solution? Governmental intervention is the only recourse, but that step is repugnant to most Americans. So, we are in for a bumpy ride.
  • ie hacks
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