Can you say "supply and demand?"

Tom Rants gives an interesting answer to those who see the Invisible Hand in the currently astronomical price of gasoline: there are nearly thirty million more barrels of oil on the market than there were a year ago. Yet the price of oil is a third higher.

Sounds to me like Steve Forbes is right: we're dealing with a bubble here, and when it pops, gas prices will come down hard.

Comments

RandomDan said…
Being in the industry, I can say that there is no bubble. Demand (mainly in China) has caused little to no wiggle room. Production may have increased, but demand increased even more.