I puzzled before about why the price of gas was going down in spite of turmoil in the ME. Iraq and Libya undoubtedly have had trouble getting oil to market ... which would usually mean less supply and increase in prices. Iran, of course, with lightening of sanctions could be exporting more than while under sanctions. However, increased production by the US is also a factor.
Imagine the economic boost if govt policies encouraged production instead of the reverse. Imagine if the ME were not in such turmoil.Retail prices dropped as West Texas Intermediate crude futures fell below $94 a barrel. U.S. refiners are processing the most petroleum for this time of year in records dating back to 1989.
“It’s crude oil at work,” Trilby Lundberg, the president of Lundberg Survey, said in a telephone interview yesterday. “The down factors outweighed the up factors. One of the many factors include robust U.S. oil production.”