Oil is under $60. That's still over $80 cheap then last year. I'd say that's still supply / demand at work. Present consumer / industrial supply & demand might not be the only factor, but it's the most important one. Oil prices always increase sharply during the summer. And if there is anticipation that the economy is in recovery and that the price of oil is going up, suppliers have all the incentive to want to sell future contracts at a higher price. But if you look at the overall market, and where the price is, it's lower than it's been since what, 2006? So no, it's not strickly supply and demand, but when you anticipate demand increasing in the short-term, and you know that supply will be limited as OPEC has cut supply - then that will impact the price.
