Bible_Belt
Master Don Juan
Over a long period of time, I could see that. But it's fear within the markets that is responsible for the sudden and rapid moves upward in price that are typically associated with war.Danger said:Bible,
It would actually be the dollar inflation (for the most part) that would drive the majority of the price increases in oil. That same inflation will affect bio-fules as well, pushing them up a like percentage in price.
On 9/11/01, there were gas stations who changed their prices to $10-15/gallon for gas, in order to capitalize upon on the fear-induced buying. Later, people hated them for it, but they were just being good little capitalists. The oil markets, or anything traded on a large scale, are not much different. In a buying panic, the value quickly becomes what the most panicking participants are willing to pay. I think oil could triple overnight if nukes went off in the Middle East.
All of this is very far removed from any logical consideration, such as currency values. But over time, as people calm down and reflect upon how foolish they just acted, price will gravitate toward more logical levels.