Originally Posted by
BrazilBusDriver
You do realize that energy prices are tied to market outlooks, right? And if the economy were collapsing energy prices would necessarily decrease as demand cratered, correct?
Like most things, that is true to a degree. If the costs of production rise, for example, final consumer cost can rise while demand falls. This is especially true in commodities that are hard or impossible to store, for example, like airline ASMs.
Option B is the producer selling at some loss as its better to price a loss than go completely without. However, the risk of this pretty apparent.