We worship an idealized market. And yet, in real life it proves to be a fickle god. Like Zeus it throws thunderbolts at hapless earthlings on a whim. But looking closer, can we determine what portion of price movement are due to fundamental supply and demand issues, and what portion is due to the actions of all the secondary participants?
Is this possible, anyone?
Today's New York Times (read the story here) points out that demand for oil is down this year - the first time since 1983. It would be interesting to correllate the actual demand/consumption of oil with its price. If we did so then we could quantify the effect of real demand on the price of oil - whatever is left over must be due to secondary "market" forces (e.g. speculation).
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