Comment by WalterBright

> so there is very minimal price elasticity.

Having lived through the various oil crises, I can confidently assert that there's a great deal of demand elasticity.

For example, when the 70s oil crisis hit, people stopped driving to the store for a loaf of bread, but would shop weekly instead. For another, people buy more fuel efficient cars when gas prices are high. For a third, people switch to electric cars.

There are regular major disruptions in the flow of oil. Pump prices change on a daily basis, and that results in the amount of gas available == number of gallons customers pay for. No gluts and no shortages.