As an idiot with very little understanding in oil and markets in general my feeling is that economics as a whole assumes that the market(in aggregate)is rational. Individuals may be irrational, but in the whole everything chases equilibrium.
Achedes
Can anyone who understands finance and energy markets (@peark.es?)
explain who makes money when point of sale oil in the future costs more than today’s oil futures predict? I’m out of my depth here, but I doubt that the oil supply crunch ended yesterday and it’ll be flowing freely in a month or two.
