Most people do not understand what drives the price of oil but readily accept the explanation pushed by this administration that it is the unbounded greed of oil companies and their “fat cat owners.” Oil companies are publicly traded and many Americans and other foreign nationals or entities can own stock or bonds in these firms.
Most economists agree that the oil industry is an oligopoly, a market dominated by a few sellers, synonymous in developed countries with “big business.” An insidious form of oligopoly, which dominates the oil industry, is the cartel. The cartel’s firms join forces to control production, sale, and the price of oil.