Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.

The global oil market is back in chaos after Israel launched military strikes against Iran on Friday. The move pushed crude oil prices up 8% to $74 a barrel

Oil market participants have switched to dreading a shortage in fuel from focusing on impending oversupply in just two days this week.After Israel attacked Iran and Tehran pledged to retaliate, oil pr

Although the U.S. is a net oil exporter, higher oil prices could increase inflation and lower economic growth.

Analysts said OPEC might not see any urgency to shift policy, as the surge in prices was driven by a rising risk premium rather than changing market fundamentals.

The West's energy watchdog said on Friday it was ready to release oil stocks should the market experience shortages following Israel's attack on Iran, drawing criticism from rival OPEC which said the statement would only create fear in the market.

Though OPEC may say its job is to keep prices stable, in fact the market swings up and down. When prices are up, Saudi Arabia and others make more money, but the smaller, higher-cost producers also start pumping more oil in an attempt to cash in. That extra supply, eventually, leads to price crashes.