Atrios and Kevin Drum are waxing economic today about the market for oil. The short version: Given that the market is currently at or near capacity for production, as demand for oil increases, additional production becomes less and less responsive to increases in price. As demand for oil increases, production remains more or less constant and the price just goes up up up. Now the self referential part: Last month I linked to some stuff about the increasing roll of the Chinese in the world demand for oil. I also speculated that the world market for food behaves much the same way. In other words...pretty soon it's time to start carpooling to that second or third job.
Note: Blogger spell check does not allow "carpool." Is carpool a word?
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