This article tries to explain how the oil market works in a simple and brief manner. However the reader should be aware that the oil market is quite complex, no one statement can cover all the cases and instances of oil trading. With crude oil and gasoline prices rising to record levels in 2008 and the potential for new records to be set in the future, it is reasonable to assume that questions arise as to how crude and product prices are ultimately established. Crude Oil Market Worldwide crude oil production is approximately 85 million barrels per day with just over 30 million barrels per day produced by OPEC member countries. Crude oil production…