How does the oil market work?

Question

We're always reading about oil futures, and oil traders, and oil prices but what does it all mean? Can somebody please explain how oil gets from the Middle East into our vehicles? The process seems really complicated.

Answer 1

Simply put demand and supply equation.

Answer 2

The fundamentals are gone to speculation. The oil markets aren't related anymore to supply and demand as they should be. The futures markets that involves millions of dollars are the main cause for the actual rise in oil prices. This is how we're paying lots of money for gas while some are making huge fortunes every day. Their power are great, almost untouchable, the ones who should rule this market are also involved. The Middle East producers already told recently, there's no reasons for that price levels, this is the proof of what I'm telling you. Let's bike.

Answer 3

Demand - supply in oil =  Costs of oil