Originally Posted by
weero
Now would that not imply that any fossil fuel - prior to some fancy additives - must follow crude prices unless there is a market oligopoly as exists for Australia?
a) Define "follow". We've been talking abt. correls... and an 0.8 corr can also be termed as "to follow"...
b) Not necessarily - which gets clearest when you think of CO2 prices. If those are high enough powerplant operators might shift away from coal and switch to gas. This might lead to dropping coal prices whilst gas or oil might be rising. But given current commodity volas it's quite difficult to "define" which fuel follows which one.
Of course,
andre1970 will see this different given his ingenious economic insights.
