When Oil Prices Spike, the Money Flows to Oil Companies
When oil prices spike, where does the money go?
Oil prices jumped from $66 to $101 a barrel after the U.S. and Israel attacked Iran. Energy economists explain that the windfall goes mainly to oil companies, but who benefits depends on ownership and regulation: Saudi Arabia's government, private shareholders in the Permian Basin and the U.K., Norway's sovereign wealth fund, or Russian oligarchs. Consumers ultimately pay the price.
But ultimately, the bulk of the money heads in the direction of the source of the oil itself – the oil companies.