• GeekyNerdyNerd@sh.itjust.works
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      1 year ago

      Same reason why oil prices keep going up even as demand drops, the price of oil is largely determined by OPEC+ and they will cut production until prices rise to where they want them, and the more they have to cut production the higher the prices have to be to offset their fixed costs. More oil = more total revenue = lower price floor for profits.

    • June@lemm.ee
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      1 year ago

      That’s what you’d think. But they’re capitalists and will squeeze every penny they can to their dying breath.

      Supply and demand is largely a myth, especially in markets like oil where it’s practically a monopoly.

      • Nefrayu@lemmy.world
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        1 year ago

        Is not a monopoly though, yes there are cartels but it’s not a monopoly. The less demand there is for oil the less power OPEC has to manipulate prices. They will be left scrambling to supply the remaining demand. Supply and demand isn’t a myth, OPEC simply manipulate supply to influence the price.