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/biz/ - Business & Finance

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12563887 No.12563887 [Reply] [Original]

>a price of a traded commodity can dramatically change within the span of a few hours
>there is no change in supply/demand for that same commodity within the same time frame
Wow so this is the power of supply/demand meme. #POWERFUL

>> No.12563903

>>12563887
it is not current supply demand it is future expectations. like stocks

>> No.12563908

Ponzi scheme 101

>> No.12563940

>>12563903
What about oil?

>> No.12564025

Demand is a subjective deal and often fluctuates dramatically according to the whim and mood of consumers, retail investors, even big time fund managers. And yes, it can change on a dime within minutes.

>> No.12564054

>>12564025
How does demand for oil change within minutes?

>> No.12564068

>>12564054
The demand may be roughly consistent, but the price it's demanded at is what is changing. Let's say oil was trading at $50 and some data came out that there was a ton of supply building up. (the ideal logical outcome follows) The buying demand at $50 will instantly dry up and and anyone looking to sell will be offering as much supply as they can there before the price goes down. The same buying demand may be waiting at $45 now instead.

>> No.12564087

>>12564068
This explanation is also much more complicated than it needs to be. If the price is going up there is more demand (buyers) than supply (sellers).

>> No.12564098
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12564098

>>12564068
I'm talking about physical demand for oil, not meme "demand" from speculative rats.

>> No.12564129

>>12564098
Ok, so 50 million barrels are in physical demand a day. Why should the price of oil follow a flat line?

>> No.12564162

>>12564129
Why should it fluctuate every microsecond if there's exactly 0 change in demand and supply?

>> No.12564202

>>12564162
Some people are looking to buy oil at 49.98 for their purpose, others are looking to sell at 50.02 for theirs so it works its way in there until no one wants to buy or sell there anymore. It fluctuating because not everyone can agree a barrel of oil is worth exactly $50.01.

>> No.12564212

>>12564162
Because it's being bought and sold by a bunch of upjumped monkeys throwing shit at each other. Never expect economies to behave rationally. Mob rule, fads, fear, and panic are as equally involved in valuation of commodities as the objective baseline considerations you're talking about.

>> No.12564239

>>12564162

Future expectations on supply and demand.

Controlling commodity prices without being the producer of said commodity is very hard. Some retarded bureaucrat is no better than a trader.

If you want to do some wartime rationing like WW2 or the 1970s to control prices go ahead.

>> No.12564245

>>12564162
If prices fluctuate AT ALL there is a change is supply and demand. I think you're trying to correlate the micro changes in supply and demand with macro changes.

>> No.12564289

>>12563887
read the economic cycle by hicks

>> No.12564395

>>12563887
Well demand is changing from speculation. Alot more buyers and money comes in to a crypto currency from shillers and fomo because yhe price is rising. Usually in anticipation of news/some event.