leveymg (1000+ posts) Tue Mar-01-11 01:28 PM
Response to Original message
5. More like, F-cking oil company execs, pit traders, and spot-market speculators.
Edited on Tue Mar-01-11 01:30 PM by leveymg
There's been little drop-off in oil exports from Libya, which account for a mere three percent of the world total supply, anyway. The volume of U.S. imports of Libyan oil are insignificant...
This is why DUmbasses are not allowed to sit at the adult table.
Economics for DUmbasses 101: Lesson 3 - Commodoties
1. Oil is a global commodity; all the world uses it.
2. Europe gets much of its oil from North Africa because it is closer and closer means cheaper (BTW - Libya is in North Africa. I know, I know, they're pretty pale skinned but there you have it).
3. If supply is diminished you will pay more, i.e. scarcity = higher prices
4. Prices rise because if you have more consumers than you have product you sell first to those who have the most to pay
5. Prices will continue to rise until supply normalizes or demand is reduced do to some users being priced out of the market.
6. As the Europeans look to maintain their supply they will exert financial gravity into other markets including those used to supply the US
7. Your prices will go up until the supply stabilizes or you are priced out of the market