Quote:
Originally Posted by GGG
How so? The US doens;t export oil and if they did I would suspect you'd see a rebate for exported oil. All this does it put very mild downward pressure on demand.
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If you can import $35 oil, then American oil has to sell at $25 to make it competitive, therefore making some producers unprofitable and driving supply down. American demand might decrease slightly, but global demand will remain almost the same which will in turn drive prices up.