Quote:
Originally Posted by Dion
Then set your prices based on the present shortage as opposed to what you think the shortage will look like after the storm
|
No, they set their prices according to the supply that is currently available. Obviously, there is a shortage of gas right now, so the price automatically goes up.
This isn't 'new'....its the way a free-market operates.
Quote:
|
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.
|
Uhhhh, I think they already HAVE accessed the damage, and realize that it might take a while to get the refineries back online, hence the sudden jump in prices.
There were Emergency Services in the US who were told the the day before the hurricane hit Texas to come fill up all their cars because there was going to be a huge shortage of gas.
Quote:
|
Are you saying that speculators no longer have a say in the price of oil?
|
No. But obviously they have nothing to do with what the price of oil is doing right now.