You can read any daily energy report, or watch it on TV. Energy market reporters almost always state some reason why the market moved the way it did.
In reality though, they don’t know why the market moved exactly, so they retroactively fit some plausible causes for the market movements observed. If they could actually and accurately determine commodity markets and pricing, they would be billionaires, not analysts working for investment firms.
Economics can be a very complicated subject. Supply concerns in my opinion, are just as subjective as market prices. There is plenty of oil in the earth. Producing it is just up to people’s decisions.
Some interesting data I found on the web shows prices for a gallon of gas per country. This is interesting because you always hear how the price of oil dictates the price of gas at the pump.
The statistics I found illustrate Turkey appears to pay the most at $9.98/gal, while Venezuela pays the least at $0.04/gal. The United States’ average price per gallon is illustrated at $3.52/gal. I guess I don’t feel so bad now after pulling up to the pump and paying $3.39/gal this morning on my way to work.
Jason RogersBusiness Development/Account Manager
The Global Edge Consultants
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