I think Walmart will go bankrupt this week, they should raise prices, just like oil. Is speculation right?

Question

How can oil companies raise prices on what they think is going to happen?

Answer 1

It happens in a lot of other areas.  Crop prices for instance.  If news came out that there was a fungal infection in the potatoes then potato prices would go up.  Basically, the news would be that in the future there will be less potatoes.  It is not that they are in short number today, it is that they will be in short number in the future.  The people who buy potatoes and need to buy them will pay higher to get them because they know that they will be harder to get in the future.  This is an application of supply and demand.