First, the US only buys about 10% of its crude from the ME, the balance comes from Mexico, Venezuela, Russia, etc.. But all the crude in the world does no good when you can't refine it. China's demand has not increased dramatically in the last year or two, and world supply levels haven't changed that much either. How do you account for fuel price increases of %60 or more when the supply/demand for crude has only changed in the single digits?
Worldwide demand for oil has increased around 5% in the last two years. During that same time, the price of oil has doubled. Anything about that seem strange to you?
From Forbes: (He's a right winger)
Mr Forbes, editor-in-chief of the influential Forbes business magazine, said inflation and increased demand from China and India only accounted for a small part of the price raise from $US25 to $US30 a barrel three years ago.
"The rest of it is sheer bubble speculation," Mr Forbes said in Sydney at the launch of a business conference.
"I'll be blunt, there's hardly a hedge fund in North America that hasn't speculated on oil futures.