Crude oil is sold on the world market. Exactly how can the US government regulate prices?
We only import a fraction of the oil consumed in this country.
By decree.
That’s sarcasm, BTW.
As the Saudi Oil Minister explained, and the US MSM ignored and no one understands anyway, about $20 per barrel is due to speculation on the futures market.
How can the US regulate this?
1.) Raise the margin requirement to 100%.
or
2.) Allow only physical delivery contracts.
The same way they're expected to regulate the weather.
In the short term, the US can influence prices by buying into or selling out of the strategic reserve. On a long term basis, they hold up prices by blocking drilling in domestic areas which are known to have reserves and by regulation which adds to expense and limits refinery capacity.
By having the balls to subsidize a competing product such as nuclear, biodeisel, coal liquification, hydrogen, solar and de-regulating so we can drill our own friggin oil right in the good ol’ USA. Then we can give the global consumer want it wants.