Swingman wrote:
On 1/2/2012 7:39 PM, Bill wrote:
Leon wrote:


But in this instance, there is no shortage so demand does not affect
pricing.

Depends what you mean by "shortage". Do you think if they fixed the
price at $2/gal tomorrow, that there would be enough around to meet
demand? By "supply", you might substitute "supply chain", taking into
account the source of the gasoline from the point that the oil is pumped
out of the ground. My point is just that the supply rate is bounded,
especially in the short run. That said, I don't know what the "fair"
price should be. I do admit that at $4+/gal, I'm pretty efficient about
my use of the stuff.

As Leon says, there is no shortage:

http://www.hydrocarbonprocessing.com...ption-API.html


Totally manipulated:

http://www.tradingnrg.com/crude-oil-...december-13th/



I am pretty cynical too. But that doesn't mean economics isn't always
at work too. I'm as politically minded as I've ever been. I would like
to see our society be a happy, financially responsible place! Let's
figure out what to do then...