Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Markets topic
No spam. Unsubscribe anytime.
Guest: U.S. cannot fully separate domestic oil prices from global market
Summary
Edward Arnold told Behind the Headlines that oil is an international commodity and U.S. refineries and crude mixes limit the ability to isolate domestic prices; he cited recent prices around $74 per barrel in his commentary.
A listener asked whether the United States could create a national oil market separate from global pricing. Edward Arnold replied no, arguing that oil trades as an international commodity and that U.S. refineries and supply mixes limit the utility of unilateral domestic price controls. "Oil is an international commodity," he said, noting recent prices around $74 per barrel and explaining that refinery constraints require particular mixes of crude oil.
Arnold explained that although U.S. production is high, refineries are configured for certain crude mixes and imports supply complementary grades. He cautioned that attempts to artificially isolate domestic prices resemble past price-control experiments and typically do not succeed.
