Just in case you thought our current high gas prices were because demand went up while supplies decreased.
Nothing could be further from the truth.
- US crude oil production is the same as it was in 2000.
- Retail sales of gasoline are at their lowest point since 1980 (possibly longer).
- US exports of oil are three times higher than the early 90s.
- Inputs to US refineries are higher than they were in the 80s and 90s.
- Gasoline stocks have decreased even in the face of sharply weakening demand.
- Total imports are the same as they were in 2000.
So if crude production is up, refinery production is up and inputs to refineries are up, while demand is at record lows, what’s causing the surge in gas prices? - Clearly the imports and exports reflect what is going on.
The dollar is losing value thanks to Bernanke’s printing press.