Can anyone explain to me how the price of oil and gasoline is set?

I know I am probably going to get some stupid answers to this question but I also know that there is people that are experts that can explain how it works. I know that supply and demand play a part and speculators are involved.Can anyone explain to me how the price of oil and gasoline is set?
Yes you are right - price is set by demand and supply. Some extra factors involved are - supply is actually sort of controlled by suppliers, distributors, speculators, logistics etc. Their goal is usually ';to maximize their benefit'; and it not always the same as ';to maximize customer benefit';. Different variety of pricing methods are used (price discrimination) and product differentiation. Our society currently are very dependent on this type of goods, so demand is sort of inelastic and market structure is far from competitive, and consequently to maximize profits they can charge relatively high prices (in some limits).