Post #2747958

There's no necessary correlation between actual decrease in ~~scarcity~~ supply and increase in demand because of human psychology. Contrary to what economic theory would have you believe, market participants (consumers/buyers, supplier/sellers) don't (always) behave rationally. When people hear there's going to be a shortage of something, they panic and rapidly increase demand which rapidly raises prices. Alternatively, the oil industry knows that it is basically untouchable as long as we're dependent on oil and can set prices pretty much however they like. "There's a war" is a popular excuse for increases. Edit: decrease in supply, of course.