'If We Net Export Oil, Why Are Gas Prices Going Up?'
"It's true. America produces more oil than it consumes. That's one of the reasons the U.S. is described as 'energy independent.' On the surface, then, it doesn't seem to make sense that gas has gotten so expensive. That energy independence, though, is not true independence. On the contrary, much of the oil that the U.S. uses is from foreign sources. According to American Fuel & Petrochemical Manufacturers, 40% of oil that reaches U.S. refineries is from other countries."
"That fact demonstrates that the U.S. is not in charge of oil or gas prices. Instead, the oil market is quite interconnected across different countries, and one ripple anywhere in the world oil market causes a tidal wave across the globe. That means war in the Middle East has a similar effect on the price of a barrel of oil from Oklahoma as it does on oil from Tehran. And then there's the fact that oil is traded on the market as a global commodity, with prices fluctuating up and down like stock values."
"Finally, the economic law of supply and demand comes into play. Crises, like the current war in the Middle East, cause a run on the market, creating a rise in demand. That, in turn, causes a rise in oil prices, which raises the price of gasoline. And that massive hike in gas prices takes a long time to fall back down."
Continued at link:
https://www.jalopnik.com/2146753/net-export-oil-gas-prices-up-why/
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