How the heck is about half of what we use a supply glut?
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I don’t think there is a supply glut right now either. The US is just refining oil and exporting gasoline so extra US supply is just being dumped into the world market. And US prices are set by world wide supply/demand
However, it looks like the USA is going to add another 1 million barrels@day of oil supply this year and early indications are that in each of the next several years the USA will also add another 1 million barrels@ day.
That’s why Citibank earlier this year said that by 2017 the USA will be a net oil exporter.
It isn't US supply when we import more crude than we need and export the relatively small refined surplus. We have refining capacity surplus, not oil production surplus.
That’s why Citibank earlier this year said that by 2017 the USA will be a net oil exporter.
As much as I hate making market predictions, I would bet my horse we won't come close to breaking even by 2017 on oil production and consumption.