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To: DaveA37

International oil prices may be declining, but a strong dollar would presumedly have no effect on domestically produced crude oil. All the domestically produced oil enjoys a price advantage in that it need not be transported great distances, but because of shortsighted policies concerning pipeline construction, so much more of it must now be transported in specialized rail tanker cars, which are more expensive form of transportation, as well as being a greater hazard. Highly profitable for those who have invested in these specialized rail tanker cars.

The price of the REFINED products is rising because of bottlenecks in the capabilities of refineries, also kept artificially scarce because of regulatory policies now in place within that territory once known as “the United States of America”.


8 posted on 05/19/2015 6:23:29 AM PDT by alloysteel ("Before I refuse to take your questions, I have an opening statement..." Ronald Reagan)
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To: alloysteel

It’s also kept intentionally scarce by the companies. Why flood the market with cheap gas when you have an oligopoly going on quite nicely. There was just too damn much consolidation in the oil market during the 90s.


10 posted on 05/19/2015 6:25:21 AM PDT by Monty22002
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To: alloysteel
a strong dollar would presumedly have no effect on domestically produced crude oil

Your presumption is incorrect. Oil is global fungible commodity and the investment for the production is global as well. Domestically produced is not going to sell at a higher price than imported less the cost of transportation. Why would a refinery pay extra?

11 posted on 05/19/2015 6:26:37 AM PDT by thackney (life is fragile, handle with prayer)
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