The CEO of Chevron gave an excellent presentation on CNBC once where he showed why commodity markets will always be volatile. Taking oil as an example, he illu

The CEO of Chevron gave an excellent presentation on CNBC once where he showed why commodity markets will always be volatile. Taking oil as an example, he illustrated that demand growth is very stable, effectively indexed to continous GDP, but supply is very 'lumpy' & because oil sites (& even oil states) tend to go online/offline in discrete steps. The same phenomenon applies to metals, agricultural goods and other fuel sources. Unfortunately I can't find the Youtube clip of this interview