To what degree is the price of oil determined by a free market?

The price of oil is indeed set on an open market given the interaction of agents wishing to buy or sell oil. Current and anticipated supply and demand do set the price levels. To what extent have supply and demand (and so price) been artificially impacted by non-market forces?To what degree is the price of oil determined by a free market?
Crude oil prices are determined by global supply and demand conditions in international markets. The production policies of the Organization of Petroleum Exporting Countries (OPEC) help determine global supply availability and these policies have an important influence on world oil prices. As a cartel, OPEC attempts to maintain oil prices by restricting its production. Its ability to do so depends on prevailing market conditions, the degree of co-operation from non-OPEC oil producing countries, and its own cohesiveness.





Crude oils command different prices because they vary in quality. In particular, the value of the products that can be made varies from crude to crude. The relationship between the prices of various crudes remains relatively constant.To what degree is the price of oil determined by a free market?
An open market is when:





Increase in demand = increase in price


Decrease in demand = decrease in price





It doesnt look like we have suddenly increased our consumption to the point where prices skyrocket.





Therefore, to reaffirm what the second responder said:





There is no free market system for oil prices. Oil prices are determined by the people that sell them. Oil has inelastic demand and therefore, you can set the price to whatever and people will still buy it.





In terms on what has impacted artificially? Easy. Prior to the invasion of IRaq - it was exporting oil. Now America owns the oil... Basically a contraction in the number of exporters allowed the big ones (Saudi and Russia) to collude together and set the prices - basically they run a duopoly.
Where have you got the silly idea that the price of oil has any connection with a free market? Have you never heard of OPEC? You have? Good. What is their aim? Yes, to control the supply, and hence the price.


Have you also noticed that the oil ';getters'; are the oil ';processors'; are the oil '; sellers';?


Free market by ar*e. Is is a stitch up from armpit to breakfast time.