"Do Demand and Supply Still Drive Oil Prices?"

Environmental Economics takes up the question of what drives movements in oil prices, fundamentals or something else:

Do demand and supply still drive oil prices?, by Gernot Wagner: Amid all of Wall Street's woes, one bit of significant economic news almost fell through the cracks this week: oil prices increased $16 on Monday, temporarily trading as high as $25 over the previous closing price. This is an all-time record high. Surely, it can't just be demand and supply that determined the price - not on a day when the Dow just happens to fall 370 points. Or can it? [...read more...]