Okay explain this to me.
Thursday May 20 gas was 98.9 a liter
Friday May 21 gas went down to 88.4 a liter
Tuesday May 25 gas went down to 87.4 a liter
Wednesday May 26 gas went up to 98.9 a liter
How is this possible? Are crude oil prices fluctuating that much? A 11.5 cent increase overnight? For you non-metric people, that’s ~$0.40 a gallon increase!
MtM
Supply and demand.
With today’s information systems, it’s possible to update prices at an impressively high rate. This is a good thing.
Okay, so to get this right when demand goes up, so does the price? I assume this is the way it works, because everyone is blaming the high price of gas on China.
Now when it comes to local markets, it was a long weekend here in Canada. So I would think demand would go up on a long weekend (everyone travelling), so shouldn’t gas have gone up in price?
MtM
Yes, if the supply remains constant.
Yes, unless the supply increased. Sometimes te suppliers will anticipate an increase in demand, and increase supply in sync with the predicted demand.