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Gas Prices: Logic and Laws of Economics Need Not Apply!

Gas Prices Defy Economic and Market Laws

Posted July 6 2009 05:57 AM by 55Guy 
Filed under: Chevy News, Car Engine

I'm sure everyone's noticed gas prices creeping back again after the price inflation and collapse brought on by the oil market speculators. Well, they're at it again...


When it comes to economics, there are a few basic laws/rules that are much like the laws of physics. One is the laws of supply and demand. The rule goes that when demand is dropping/low and supply is high, prices go down.

This morning looking at my NY Times online edition, I came across this story talking about how the oil market is defying this rule of economics, and how it makes no sense, except when you figure in the role of the oil speculators who are artificially driving the price up by manipulating the market. It's a good story, check out the link:

 

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