Supply and demand are at the heart of capitalism. When there is a small supply of coffee and a huge demand for coffee, then the price of coffee goes UP. It is called a bull market for coffee.
The huge price for coffee inspire LOTS of people to grow coffee. When the supply of coffee becomes huge, then the price of coffee goes down. In this way, capitalism insures that everyone who can pay for coffee, gets coffee.
Right now the price of oil has fallen. THIS IS GOOD NEWS FOR THE WORLD! A low price for oil is is the equivalent of giving extra money to the people who have to buy oil products. So if you drive a car, heat your home, or own a factory, YOU HAVE JUST BEEN GIVEN EXTRA MONEY.
All indications are that the price of oil is not going back to over $100 a barrel. Oil could stay between $45 and $50 a barrel for several years.
However, the price of oil COULD GO DOWN TO $20 A BARREL if countries like Venezuela panic and start undercutting prices in order to attempt to keep oil revenues stable.
THIS IS THE FUN PART OF CAPITALISM. All us poor people get extra spending money and the rich people moan about their investments in oil.
* A BULL MARKET is slang for a market that is going up.
** A BEAR MARKET is slang for a market that is going down. (It does look like the capitalism bear is beating up the Russian bear. Figuratively, of course.)
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