Relevant and even prescient commentary on news, politics and the economy.

A Deeper Dive into Oil Pricing

In the previous post, I suggested that speculation is driving oil prices higher than they should be.  In this follow-up, I think I can show that oil prices are not behaving in a completely supply-demand determined way.  We’ll look at price activity, volatility, and an estimate of what rational pricing might be. First, here is […]

Speculation About Oil

Last Spring, some Democrats and liberals (Ed Schultz and Bernie Sanders spring readily to mind) who have somehow resisted the enlightenment of unfettered free markets suggested that high oil prices are due to speculation. Noah Smith took this subject on, asking the question: “Do speculators cause oil and/or gas prices to rise above their “natural” […]