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To: izzatzo

No, it is fundamentals of microeconomics. There is a surplus of crude at American refineries. This shifts the supply curve to the right meaning less price per unit of product. Increased efficiency in cars and behavior changes favoring less driving is overcoming the typical increase in demand associated with summer driving. All things considered, this leads to a surplus which creates a new market equilibrium at a lower price. Next question?


6 posted on 05/30/2012 8:06:27 PM PDT by gas_dr (Trial lawyers AND POLITICIANS are Endangering Every Patient in America)
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To: gas_dr

America and Americans no longer control the oil market. US companies control less that 5% of the worlds oil production.

Crude oil is a fungible commodity and what the US does today matters little on the world price of it.


39 posted on 05/31/2012 1:55:52 AM PDT by Sea Parrot
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