The two key commodity principles are elasticity and fungibility—commodities are highly inelastic, so small amounts of fungibility cause prices to normalize to equilibrium, meaning all hydrocarbons will eventually trade at the same price when corrected for energy content and logistical complexity.
definitionpending
Speaker
DoombergEvidence Quote
“when you look at Commodities there are two words you need to to keep in mind at all times and those two words are elasticity and fungibility because of the highly inelastic nature of Commodities it doesn't take much in the way of fungibility for prices to normalize”
Source
'Never Before Seen' Oversupply Of Oil To Collapse Crude Price? | Doomberg & Paul Sankey— David LinCreated: 8/12/2026, 6:45:10 PM
My Notes
Loading notes...