Political oil increases

For decades it was unlawful to export crude oil from the United States. So, oil companies would transport their crude to refineries, many near Galveston, to be refined into petroleum products, including gasoline, and then exported.

However, only a few months ago, Sen. Mitch McConnell and the Republicans passed legislation removing the restriction and permitting the export of U.S. crude. Now U.S. producers are shipping American crude overseas, adding to the oil glut.

Oil prices, inexplicably since we have a domestic oil glut, have risen slightly, but they are sill very low. The wholesale gasoline price, however, has jumped almost 40 percent per gallon on the basis of “seasonal maintenance” of refineries.

If they’re now shipping crude, what’s happening to the existing refinery capacity not being used to refine that crude? Why isn’t that holding down U.S. gasoline prices?

I am fine with paying $1.50 to $2 a gallon for gasoline. That’s a healthy price and a component of a healthy economy. But there’s no justification for the current prices, oil or gasoline, and the manipulation of prices by oil interests.

There is an explanation: speculators are driving the market. (By the way, natural gas is down 10 percent at the same time). It should be investigated and halted.

This story was originally published April 7, 2016 at 7:29 PM with the headline "Political oil increases."