The problem is that we have been led to believe and the speculators are profiteering from is that the supply is far more fragile than it is. The chances of supply disruption from Iran and Venezuela are extremely small, and Saudi Arabia has said they can easily supply another 4.5 to 5 million barrels per day.
I also love they claim a refining shortage and a crude shortage. You either have enough raw material for the processing capacity or you have enough processing for the raw material. You can't have it both ways.
I would also be interested to see the margins of the oil companies before discretionary costs. This is a real indicator of their profitability, and they are merely choosing to spend more and reducing their net income.
