An interesting take over at Coyote Blog:
So Where Are They Storing All the Oil?
I find the current political demagoguery that oil speculators are now the ones responsible for higher oil prices to be absolutely laughable. I am willing to believe that oil supply and demand are perfectly inelastic over very short time periods, meaning that we might expect little change in supply or demand over a couple of days or weeks after a price change, allowing for a fairly free range of speculative excesses. However, there is every evidence that oil is by no means perfectly price inelastic, and supply and consumption do change with price. Already in the past few months we have seen, for example, substantial reductions in passenger car miles in this country.
An interesting read. Warren's commentors offer specific examples of what Warren is talking about — an good look at the Futures market…
Posted by DaveH at June 26, 2008 03:26 PM | TrackBack