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Originally Posted by Azure
Because by then its already too late.
They're is a shortage of gas right now, which results in the increase in price.
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Then set your prices based on the present shortage as opposed to what you think the shortage will look like after the storm
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Simple supply and demand economics.
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The amount of damage determines the amount of the increase. If the refineries are down for a long period time the shortage will become greater creating more demand and higher prices. Contrast that to them being up and running in say a week and thus being able to supply that shortage sooner.
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That was before it began dropping. OPEC had to increase production during the summer, and right now there is extra oil on the market. That is the only reason prices aren't rising in step with the gas prices.
Shortage of gas, excess of oil. Results in a lower oil price, higher gas price.
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Are you saying that speculators no longer have a say in the price of oil?