It's not an either/or situation. Today's crude prices are affected by both current supply and demand as well as speculation -- which is NOT a bad thing, despite what some politicians, populists, and demagogues would have you believe. Speculators use futures markets to purchase oil -- or gas or wheat or corn, whatever -- at today's prices in the hopes of selling their holdings later at higher prices. That serves a valuable purpose, and not just to those engaging in the speculation. Another massive cause of this rise in price has been, indirectly speaking the rise in growth and consumption in India, has driven inflation rates up to, as of now 11.5 %.
Let's say corn is selling for five dollars a bushel today and you think it will sell for twice that price a year from now. You could buy a thousand bushels for five bucks a bushel, store it, and then sell it next year for ten bucks a bushel and make a nice profit. Well, what is the effect of your doing that? It does two things: 1) it reduces the available supply of corn today, because you are storing it for next year, and 2) it increases the demand for the corn today, because you are creating demand for speculative reasons, not because you wish to feed your cattle or your family. So, your purchase -- and the purchases of other speculators -- has the effect of lowering supply and increasing demand, which places upward pressure on today's prices. You might think that's a bad thing, but it's not, because futures markets allow us to allocate valuable resource over time better than if we didn't have futures markets. Without them, there might be lower prices today when a commodity is not in short supply, but there would be greater shortages later on. By increasing prices sooner rather than later, speculators provide a valuable service. Short-term prices go up more rapidly than they might have had there been no speculation, but future prices are reduced because of the greater supply of the commodity that is created when stored quantities are released for sale. The higher short-term prices also send signals to consumers to consume less and producers to produce more or find alternative products. In summary, speculation and futures markets help us allocate valuable resource over time, by increasing prices today (by reducing supply) and lowering them tomorrow (by increasing supply).
Demand,
true
Usually the prices of goods and services are demand driven. When the demand for an item is high its price usually goes up and similarly when the price of an item is low its price usually goes down.
The Alaska Current is a wind driven current.
The "north Atlantic current" is very strong.I really like the "north Atlantic current."The "north Atlantic current" is driven by the global thermohaline circulation (THC), it is wind driven
Speculative investments are driven by pure speculation and doesn't involve you to own the stocks or currencies that you are trading. Speculation is driven by various factors such as economic data.
The words are just what they say. Demand is how much desire consumers have for a product or service. Supply is how much of a product or service is available. When demand is great and supply is low the price of a product or service increases. When demand is low and supply is great, the price of a product or service decreases. The effect on price is the quantification of supply and demand. Demand in many instances is driven by disposable income and free time. Henry Ford recognized this in increasing the wages of his workers and decreasing their work time. See the related link below.
coffe and stuff
Indirect demand refers to the demand for goods or services that arises from the demand for another good or service. This can occur when one product is necessary for using another product, causing a ripple effect in the demand chain. For example, the demand for automobile tires is indirectly driven by the demand for automobiles.
by the currents under it, if you have watches Finding Nemo (ARR) they go in the EAC East Atlantic Current, on the surface of this current, there is a similar current, although it is not as fast or as strong as Underwater in the eac.
A direct current dynamo with a major 'amplification'. Driven by a turbine.
its the gulf stream