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Originally Posted by Elspode
That is a dizzying array of market influences. The only thing dizzier than that array is the again *extremely unlikely* confluence of relief of all those possibilities occuring *at the same fucking time*.
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Event need not occur at the same time. Just the fact that so many possiblities exist is why something completely different then happened. That only some events were possible is why oil dealers were massive hoarding oil this summer. You don't care whether those events could happen. You saw only what did happen. Oil dealers were massively seeking oil storage depots, oil future contracts, etc because the market was so unstable; because they have long term contracts that they must meet. Those many threats were enough to only raise oil prices slightly. Did prices rise from $2 per gallon to over $4 per gallon? No. IOW the price rises were rather mild.
Don't forget history. When oil shipments from some sources were interrupted, then gasoline rose to $7 per gallon.
Now that dealers don't need reserves, prices have dropped from $3 per to $2.50 per gallon. Of course. Simple market economics.
Meanwhile, did you notice how market problems kept fruit and vegatable prices so high this summer? Why not? Again, market forces caused, for example, blueberries last year at $2 a box to sell for $2.50, $3 and at one point $4 per box. Clearly blueberry farmers are also greedy bastards? Welcome to the free market. Of course, you know why fruit and vegatable prices were so high? Those reasons have been widely reported by every responsible new service.