Friday, August 01, 2008

What Would We Do Without Experts?

Crude and heating oil prices drop -- Nothing new here really, just a recap of the impact of oil with a focus on heating oil costs for next winter.

But the experts seem worried the the Law of Supply and Demand may still be in effect.
In the United States, experts also are worried that, as prices for gasoline fall, demand will rise again if motorists resume their old driving and vehicle-buying patterns.
The price went up and consumption went down - petroleum use decreased 3%. Are they really worried that a commodity which has a demand curve that is this price inelastic may in fact still be subject to supply and demand. Here's a prediction: If the price of oil and gas goes down, we will use more of it. If it stays high, we will use less of it.

All those experts probably make a lot of money.

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