Tag Archives: commodities

Fuel Pricing & The Trajectory of Currency

Fuel & crude, right up there with gold & currencies, are among the easiest of commodities to manipulate; the profit potential is massive and along with it the consequences as well. Much has been written about the new-found resources (domestic) and with it the belief that user-energy costs will soften with a supply increase; but not so fast!

It is important to remember the fuel/crude prices move in the global commodity of commerce where the customary metrics of supply & demand are truly not the final arbiters of price. There is far more profit in manipulating supply & demand and this function, market manipulation, is the most potent commodity of all.  Fuel prices will remain high (than actual supply/productive capacity would otherwise dictate) simply because of the collateral advantages offered by the commodity of manipulable market realties.

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