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Alternatively, oil is high because there's a cartel interested in maximizing profits, and there's enough dust in the air from world events that they can claim p
by turtledove 4y ago
Alternatively, oil is high because there's a cartel interested in maximizing profits, and there's enough dust in the air from world events that they can claim plausible deniability.
It's purely free markets doing what they do - trying to optimize for the point where profits are highest by raising prices until demand drops sufficient to level off total profits. Externalities be damned (environmental, social, economic, etc.)
- HWR_14 4y agoThe cartel just reassessed their output as a result of the continuing war and decided to increase output. And OPEC cares a lot about externalities. They know that pushing oil prices high enough will cause a recession which leads to less money for them. (They learned this in 1979). So they try to maintain a healthy but not runiously shortsighted profit.