-oil shortage.
-Price is capped at $50/barrel to prevent “price gouging”.
-A bunch of shut down wells that are only profitable at $70+ stay shut down.
Do you see how price caps prevent supply with higher production cost from entering the market?
-oil shortage.
-Price is capped at $50/barrel to prevent “price gouging”.
-A bunch of shut down wells that are only profitable at $70+ stay shut down.
Do you see how price caps prevent supply with higher production cost from entering the market?