a question about oil prices

While I dont do business in the oil industry, a few of my expat buddys are big wigs at exxon (some in Dubai, Singapore, Tokyo). They have told me year in and year out (in casual conversation - and long before the current crisis began) that there is more than enough oil to go around. No shortages at all now and for the future. However I also read these days that the price of oil is being boosted by "speculators" who are claiming increased demand and decreased supply.

 

As the 3rd largest producer of oil in the world, is it possible that the US governenment is attempting to push the price of oil up to gain profits on the sale of oil so that they can help to pay off their huge debt that has accrued since the Bush administration took control?

 

I just have a hard time making sense of these conflicting stories.

The price of oil is where it is because of many factors.  The price is completely controled. It is not at this price because of supply and demand. Speculators are a fly spec in the market. Oil is a integral cog in the manipulated economic cycle. It is used at the end of a cycle to put the brakes on economic activity. The price will always be confounding unless you understand how it fits in the big picture. Hope this helps

Appreciate you both taking time to answer my question/theory.

 

I realize the US also imports a lot of oil, but they are also selling a lot that they have produced to US consumers. My thinking was that they would be profiting from selling to its own US customers. As for the imports, I figured it was more private business importing the bulk of those barrels then passing the increased cost in large part to the consumer and has little effect on the government balance sheet.

 

Back to the books for me...