Monday, March 12, 2012

12 percentage point drop in oil imports; prices still up.

Report out today, points to a high point in the ratio of domestic production to imported oil (since 2003).  The US now imports 45% of oil it consumes, down from 57% in 2003.

Rhetorically, one would want to know why we are experiencing high gas / oil prices if domestic production has increased approximately 2%, even as US demand has decreased, right?  That is, after all, the Republican rhetoric currently being offered, particularly Newt.  (Nevermind of course, any sort of government interference in free markets of oil?)

The EIA tracks prices globally for different benchmarks, noting that oil is...global.  You can't expect a drop in oil prices domestically just because we're importing less oil.  Among other things, oil goes to the highest bidder, not to cousin Ed at a discount, just because his folksy twang makes you go, "aw shucks."

Although it wouldn't surprise me if politicians were found to be secretly buying oil at a discount from financial traders, to be promptly sold at a nice profit, quid pro quo.  After all, some billionaires continue to complain that they don't have enough political influence.



EIA explains the different forces that affect oil prices.

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