Post
Topic
Board Economics
Re: The reason that crude oil price crashed
by
NewLiberty
on 03/01/2015, 05:28:53 UTC
Im sure some of it has to do with Saudis wanting to fuck Russia over Syria

It has to do with a weak demand and an abundant production.

Usage is increasing slower than supply is increasing.
Oil has a large markup due to scarcity created from cartelling, and that markup is contracting.

At a lower price, usage will increase more swiftly, until then we should expect the price to over-correct.

As for renewable energy being more expensive?  That depends somewhat on what is included in the cost.