5min chapter

Forward Guidance cover image

Michael Kao: Bank Bailout Allows The Fed To Tighten Even More

Forward Guidance

CHAPTER

Is the Oil Supply Inelastic?

Sally Kohn: I see the long term, longer term supply curve for oil becoming more and more inelastic. It means that it's very sensitive to shifts in the demand curve, right? Like a near vertical supply curve and you've got like a downward shift in the demand Curve because of say global recession,. You could have that price of oil just plummet to like, you know, 40, 50 bucks even, right? Unless OPEC supports the price, right? She says China may keep a lid on a parabolic price spike it may because they have built up this big SPR, but then again, their SPR is not even necessarily that big relative to their population size. S

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