It's not all supply and demand.
The increase in oil price is many times what the increase in oil demand has been.
Is world demand 7 or 8 times what it was a few years ago, like the price of oil is?
No it isn't!
Of course a lot of the oil price increase right now is over speculation on war with Iran, and continued war in Iraq.
However, Alaska is suing the oil companies for blocking oil and gas production.
Memos show oil companies chose to shut down refineries, and not build new ones.
Giants like Exon/Mobile Chevron/Texaco have the power to turn back the tap, to keep prices high.
OPEC has been doing that openly for decades.
That's not supply and demand.
That's naked market manipulation, price fixing, and restraint of trade.
There are laws against that, if only they were enforced.
Your statement "The increase in oil price is many times what the increase in oil demand has been." is the most ignorant and absurd statement on this subject I have yet seen. You have NO idea what "demand" actually is or how it is measured. Read my No. 125 and follow my suggestion there.
Educate yourself and come back when you can make some sense.
It is supply and demand. Just because you don't understand economics doesn't mean it isn't true.
Demand is not the amount consumed. It is a curve of how much consumers are willing to buy at different prices.
One of the reasons oil companies shut down some refineries is because oil supplies were depleted in inland areas and there was no longer enough oil to supply land-locked refineries in inland areas. You'll notice that most of our refineries are now on the three coasts or near the Houston ship channel, so the refineries can receive shipments of imported oil. Shell Oil just shut down a refinery in Bakersfield, CA last year because they no longer have enough San Joaquin Valley oil to run the refinery at a profit. Shell tried to sell the refinery, but last I heard nobody wanted to buy it because it loses money. The oil industry is constantly changing. It's not like semiconductors where they have abundant raw materials and they can build their factories anywhere and keep them running forever.