No. of Recommendations: 3
Yup.
Also, in these markets, it's all about marginal costs and supply shocks. Bottlenecks.
Panics. Derivatives. Futures markets.
A 5 or 10% temporary fluctuation in supply, or even less, can have a much bigger impact on the spot price.
There are a lot of levers in these markets, and a lot of different players, all trying to make as much money as they can and screw everyone else if they have to.
The price I'm willing to pay for a gallon of gasoline when my tank is 3/4 full and I'm at an intersection with 3 different gas stations, might be not the same as the price I'd be willing to pay for a gallon of gas if I'm stranded by the side of the road because I forgot to fill my tank and it's a ten mile walk to the nearest station.
