Yeah! These stories never matter.
“Eleventy-gabillion Barrels of oil found under (insert American state/city)”
blah blah.
Still paying 5$ gallon from the Aye-Rabs
“Still paying 5$ gallon from the Aye-Rabs”
You are a special one I see.
First off the USA is producing more oil today right now than we ever have on a barrel per day basis.
We are also exporting record amounts.
Oil is a fungible global commodity you have to know this if not then we’ll can’t help but think there was a mental issue involved.
Gasoline and especially diesel is up because we are exporting record amounts to Japan and Europe the tanker depots are back logged.
I will put it this way it costs under 50 cents a gallon to tanker transport a gallon of diesel across the Atlantic. The market sale prices there are double what they are here wholesale. So you are Exxon Mobil and have a choice sell a gallon of diesel to the wholesale market here or put it on a tanker and charge the receiving party FOB for the shipping costs then sell it to them at a nearly double wholesale price.
Yeah they are exporting the max that can be put on tankers and shipped. This is the main reason prices are up the domestic market is competing for gallons that Europe is willing to pay much more for.
The other reason is speculators in the commodities market are making a killing.
It’s not a supply issue domestically at all we are a net exporter of crude oil and more so refined products.