• @Nefrayu
    link
    English
    3
    edit-2
    1 year ago

    Is not a monopoly though, yes there are cartels but it’s not a monopoly. The less demand there is for oil the less power OPEC has to manipulate prices. They will be left scrambling to supply the remaining demand. Supply and demand isn’t a myth, OPEC simply manipulate supply to influence the price.

    • @[email protected]
      link
      fedilink
      English
      11 year ago

      The fact that they can just manipulate supply I what makes supply and demand a farce with oil. Demand doesn’t change the price, only supply.

      Oil and gas could still be cheap today, there’s no shortage of oil at all, so they create the conditions necessary to benefit them. They’ll do exactly the same thing as demand for oil peters out, but they’ll wring the neck of that goose tighter and tighter until it finally dies. And it’s the people who can’t afford a new car that will suffer the worst when that happens.

      • @Nefrayu
        link
        English
        11 year ago

        Demand does change the price. You can see the price drop during economic downturns. Supply and demand are two sides of a single equation. It simply doesn’t make sense to say that only one impacts prices.

        Prices had been dropping recently despite KSA reducing supply, until the attacks in Israel that is.