Why should any oil company sell American oil at a reduced price in the US if it can be sold to China, Europe, etc for futures market price?
Just like in the housing market, if you bought a house for $200K in 1995 and today a similar house sells for $600K, would you sell it for $200K because you bought it cheap?
There is nothing like “cheap domestic oil”. Oil is much more expensive to extract in the US than in the Middle East where you only need to insert a tap on the ground.
The US imports almost twice more oil from Canada and Mexico than from the Middle East. Even Mexico, where wages are small compared to the US, gasoline and oil prices are set to futures market value.
