Price is a Function of Supply and Demand

I don’t know if any one of you out there can explain to me exactly how to determine the function or formula that can adequately explain the price of Crude Oil. I don’t think that simple analyses of Supply and/or Demand can answer it. Looks chaotic to me…

http://blogs.ft.com/energy-source/2009/06/09/eia-2009-demand-forecast-raised-by-5000bpd”

“EIA 2009 demand forecast raised by 5,000bpd : June 9, 2009 6:49pm : by Kate Mackenzie : It could be one of the tiniest green shoots out there: the Energy Information Agency in its latest short-term energy outlook increased its projection for world crude demand…we checked with the EIA and they said May was 83.672m and June was 83.677m – so the difference was only 5,000, barely showing up in the two decimal places the EIA publishes.”

And, then there’s the visual data :-