China's Fuel Shortage

Posted By: Dr. Frugal in Economics on 10/31/2007 at 05:29:33

China is facing a huge fuel shortage right now. Their economy, as anyone on the planet not living under a rock would know, is absolutely booming. OPEC has replied by saying they can pump more but it won't bring prices down. Now, I'm not an economist but doesn't increasing supply lower demand (and prices)· I don't get it. China needs the goods and you have the goods so why don't you just give them what they want and collect a nice fee for your services·

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