Energy, Climate, New Economic Thinking​

How Oil and Gasoline Prices Actually Work

At some point in their lives, most people learn some version, no matter how rudimentary, of the supply and demand curve. At some later point in their lives, nearly all of those people conclude none of that applies to oil markets, which are, they claim, manipulated by politicians, or a cartel of Western oil companies, or OPEC, the Organization of the Petroleum Exporting Countries, with 13 members mostly from the Middle East and Africa. But that is a mistake, Clark Williams-Derry, an energy analyst for the Institute for Energy Economics and Financial Analysis, told Motherboard. He said oil markets are much closer to the classic version of Economics 101 with the supply and demand curves than, say, iPhone prices, where Apple decides what an iPhone costs and then sells it for that price. Motherboard