Posted on 04/22/2014 12:36:23 PM PDT by Theoria
Drivers in the U.S. are facing rising gasoline prices ahead of summer-vacation season, just as refiners here are shipping more gas to other countries.
A new pipeline, built to release a glut of crude oil that was stuck in the middle of the country, is now feeding oil to refineries on the Gulf Coast that churn out gasoline and diesel. While these fuels still make their way to the Southeast and the East Coast, growing amounts are being sold to Mexico, the Netherlands, Brazil and other countries.
The push into these markets has been spurred by the U.S. oil boom. Rising oil output had been flooding the nation's oil market in recent years, keeping U.S. crude prices low relative to world prices. Facing tepid fuel demand in the U.S., refiners have been ramping up exports, creating more global competition for U.S.-produced fuel.
While the construction of pipelines and other transportation infrastructure allows other countries to benefit from the oil boom, it also means the market for motor fuels has become more competitive. The gasoline market now has to reckon with demand from other countries—and the potential impact on prices—during a U.S. economic recovery many economists see as fragile.
"Quite frankly, this is not just a U.S.-centric topic anymore," said Nancy White, a spokeswoman for motor club AAA. "Production is going overseas, so that impacts the supply here, and that will drive prices up."
Gasoline stockpiles nationwide are at their lowest point for this time of year since 2011, according to the U.S. Energy Information Administration. Meantime, the retail price for a gallon of regular gasoline averaged $3.68 on Monday, up 4.2% from a year ago, according to the EIA. That is the highest price since March 2013. AAA had the average price on Monday at $3.67.
(Excerpt) Read more at online.wsj.com ...
Is there an oil shortage?
Why do you advocate government price controls?
How about adding a hefty tariff against all oil products sold outside this nation? The money earned should then be earmarked to debt reduction. No earmarks.
There would be plenty of gas. US production is at all time highs.
It happens every time socialists try to nationalize something.
/johnny
I didn’t say anything about price controls, just exports of oil off public land while we are being hosed on prices.
Sell it here for all the market will bear, no price controls.
So, even if Keystone is approved, even if we drill more oil, we’ll still be paying out the wazoo for fuel. We could still see shortages if fuel is exported for the highest price. Isn’t that what Stalin did in the 1930s with food? Why should we approve these things then? The left would use this as an argument that free markets don’t work.
Nationalization and price controls are socialist tools and ideas.
/johnny
Who pays the tariff, the producer or buyer?
You and oliver are the only ones talking about price controls.
While Southern California (San Diego) drivers are hard pressed to find gas under $4.09/gallon.
Buyer, absolutely. We need to improve our trade imbalances, too.
Look, American oil might be the biggest bargain anywhere. Don’t change it too much, but right now, we’re not getting anything for it... OK, I do not know if we already have a tariff...
But obviously, if they’re flocking to our shores to buy the stuff, raising the tariff and earmarking it for debt reduction still helps us in many ways. Lower debt, more stability. More stability, more the dollars is valued. More the dollar is valued, our own money goes farther. Lower debt also means lower taxes. Lower taxes means we can afford higher gas prices.
Cali is the second highest state for gasoline taxes.
That plus the “gaia friendly” blends mandated certainly drives up the pricing.
http://taxfoundation.org/article/state-gasoline-tax-rates-2009-2013
Unfortunately I also remember when my kids were teenagers and we filled their cars and mine every Monday morning at a cist if slightly less than $20, providing we were in the midst of a gas war when it was $.19 a gallon instead of $.25 a gallon.
I don’t understand why Fritz Oilbuyer in Germany would pay for US oil at world price + a tariff when he can get oil from Iraq or Saudi Arabia at the world price.
What's that got to do with it? They sell to the highest bidder. Which is the point you're missing: the prices are HIGHER IN OTHER COUNTRIES.
So our gas is cheap by comparison!
As more Americans are unemployed, fewer need as much fuel. Foreign governments are willing to buy products refined from oil for their strategic reserves and manufacturing economies. When our default process is further along, we won’t need much fuel at all.
A market is a market. It makes no difference in a free market where the oil goes. That is, until economically ignorant busybodies start interfering with the market with ill-conceived tariffs, taxes and regulations which drive up the price even higher in the home country.
Yep. RandY Paul supporters.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.