Crude Oil Prices
The United States exported more 430,000 barrels of gasoline a day than imported in September. This number is twice the amount at the start of the year and experts believe this number will only increase. This is a trend that was first notice in the 2008. Until then, the United States has had to import gas from other countries for domestic use. However, demand for gas has decreased nearly 10% in the past few years. As it has gone from 9.6 million barrels a day in 2007 to 8.8 million barrels in 2011. Although the drop can be greatly contributed to ...view middle of the document...
But the difference now is that the US has enormous refining infrastructure to produce even more gasoline, diesel, and jet fuel than needed. This allows the US to export all of the extra to place like Brazil, Mexico, and Chile. The US is exporting so much that they are on track to be a net exporter of refined product for the first time in more than 60 years.
"We've got plenty of excess refining capacity. It's a reminder that this is a global oil market, and it's reflected by the movements of products to where they will get the highest prices." Jonathan Cogan, a spokesman for EIA.
The big question surrounding all of this is why are oil prices still on the rise if we have more than enough crude oil for gasoline?
"I can understand it, from a truck driver's perspective," "You're paying $4 or $4.50 a gallon to run your rig, yet we're exporting the crap out of this fuel. I'd be outraged too." One US citizen said. More so, there is nothing that forces oil companies to bring crude oil to the United States to refine.
Oil usually goes up when the dollar is weak, but this is not the case given all the problems in Europe. Have to be alarmed if hedge funds or speculators piling into oil. As for the US demand of oil, that is not there to drive prices up either.