Avoiding politics, I was reading the other day that there is a glut of oil on the world market.
It seems that several oil producing countries ratcheted up their production because they got the
impression that the USA was going to severely curtail its imports of oil from certain other oil producing countries by imposing sanctions. These other producers expected that would mean they could sell their intentionally increased production to us at the current market price.
BUT the expected import reductions (sanctions) were never implemented, so now the increased production has resulted in a surplus on the world market - driving the prices down. Supply and demand in action. The fact is the price is controlled by the producers. It goes down when they increase production, and when they decide they want more per gallon, all they have to do is just dial production back a bit and VOILA' demand exceeds supply - causing the price to go up.
It really isn't about how much oil there IS - it is about how much they are willing to sell - and correspondingly how much they are wanting to get for it. The boys from OPEC started playing the game that way way back in 1973, and it continues right up to today.
So the article I was reading was basically saying that the person(s) who gave the
impression that some economic sanctions against some of the oil producers were going to be imposed, kind of "tricked" all the other producers into creating a glut on the market - giving all us regular folks a break on the price of gasoline
