Quote:
Originally Posted by sac-a-lait
YEP DB$D, regular ole supply and demand working at it's finest.
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Yes, it is. If you understood anything in those two articles, you'd see that.
From the second article you posted:
"However, as economic growth stagnated in the developed world and cash-strapped American consumers cut back on expensive gasoline purchases
(translation: demand decreased) that production
(translation: supply) increase turned into a glut and oil prices plunged by more than $30 a barrel. Now that crude is down significantly from its record peak, OPEC is getting ready to take some of the excess supply off the market."
(translation: too much oil and not enough buyers.)
That's a textbook example of how markets work.