I’m just a caveman, your modern science of economics confuses me. Which is why I don’t understand the new law of supply and demand I infer from this AP article: Oil up to near $76 in Europe amid economic worries:
Oil prices edged up for the first time in five days Tuesday as rallying stock markets in Europe and a weaker dollar masked concerns of a slowing global economic recovery that could dent demand for fuel.
So demand is going down, and the price goes up, huh? That’s so weird.
However, those of us with a lick of economic sense (I got mine from my high school Economics class with Miss Hutson) can suss out the real reason. Let me try rewriting that:
Oil prices edged up for the first time in five days Tuesday as a weaker dollar meant that it takes more of them to buy a fixed commodity, such as a barrel of oil, in an international market.
Is it true? Hey, I don’t know what made the price fluctuate, but I think I have a better grasp than the AP reporter of basic economics.