• Preston Maness ☭
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    2 years ago

    Supply and demand describe the fluctuations of the prices of commodities about their costs of production. They do not describe the prices of the commodities themselves. Oil’s demand is relatively inelastic --and its supply constrained by cartels-- and as such its price can remain detached from its costs of production, enabling super-profits.

    Suggested reading:

    • Value, Price and Profit
    • Capital Vol I