One would think the Obama administration would be shouting any good economic new from the rooftops but a truly historic economic trend will probably not even be mentioned by the President who ran on a platform of "green jobs". Congratulations Mr. President, for the first time in 60 years the US has become a net exporter of fuels. In fact, the top US export is fuels; gasoline, diesel, and jet fuel. Fuel exports accounted for almost $88 billion in the first eleven month of 2011. The recession has brought a lower demand for gasoline in the US and the US now has surplus refining capacity hence much of the oil it imports is now exported as fuel. The American consumer does not fare well under this scenario as gasoline prices remain high. Notice in the chart below that WTI (West Texas Intermediate crude-The American crude price) has departed sharply from the Brent crude (The European crude price). The cause of this divergence is still being debated but if it continues, as many predict, with more US oil and gas production it augers well for the manufacturing sector. With a competitive corporate tax the US stands to partake of a manufacturing renaissances. If only the US had responsible leadership!
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