AB_Monterey…. The short answer is you have to go back to the 70s to find the root cause….
And yes, speculation about how much supply will be available is what drives the market price… hence, companies that control the refineries have a lot of influence regarding if there will be enough supply to meet demand….
Slow your oil production and if the market believes that demand is going up then the price for your product will increase…
Also, since the Oil Companies are the ones reporting demand numbers and inventory levels they are in an excellent position to slant perception as they see fit..
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