The price of oil is going up because it’s a future demand market. The demand/supply of oil hasn’t really changed. Say company X wants a garunteed 1 billion barrels of oil, and company Y wants the same amount, well now they are competing for the same product. So say company X offers $90 a barrel for the oil, and company Y then offers $91/barrel. The more they spend to secure their supply, the more it comes back to the consumer.