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All this turmoil in Egypt what it is sure helping to push crude oil near 100 dollars a barrel settling -- highest level in fourteen months today.
Telling -- with his energy outlook.
Denton seeing -- grind that chief oil analyst for the Oil Price Information Service and to welcome to you.
And the crude oil barrel is flirting with that 100 dollar mark in our eyeballs sort of pop out of our -- we see that we worry about inflation but what is driving the prices it Egypt's Middle East right now.
It's actually not Egypt in the Middle East there's some Saber rattling never stepping out rattling -- -- you look at this list can now you wonder about production disruptions reeling and -- that is playing in because he's got such a quick jump.
And dollar was stronger.
That helps it -- You're actually -- dollar a stronger dollar would actually put pressure on oil price that's right a stronger dollar less you know -- exactly how to access directly affect.
It's more about the rosier macroeconomic outlook -- -- that you talk about auto sales began war.
On the rise it's things like that that are -- have people really looking -- oil prices and and pushing prices are.
-- would you see an impact in the rent -- price so what we're talking that is the west Texas in army correct a case the Brent crude is more of what the Europeans use.
And then we're seeing a 104 dollar barrel and a lot of people talk about convergence so you're within five dollars this WTI and Brent.
That is also interesting and tell me why.
Yet the spread between Brent and WTI.
-- is more -- less -- on the water occurred it's easily put onto chips shipped out to the US East Coast refineries there.
Read more or west of west western media were landlocked so I have to move by pipelines.
Come from west Texas what we saw the relationship.
On the release it's important because there is there's times where you if you're refiner on the East Coast you to bring -- anchored there.
Tom and negative by pipelines that and things like that so.
It's it -- it widened out tremendously.
When about it in 2010.
But it's coming tremendously too so it'll be interesting to see what happens here in the next -- couple weeks.
So the statistics if you look at production values.
Are amazing right now because the US is really taking the lead the EIA's reporting the US is the number one petroleum producer in the world now.
Report -- consecutive month what does that say about our potential for energy independence how close are we.
We get in there it's definitely step in the right direction.
But keep in mind that what statistics you could kind of twist them up to say whatever you want them -- So while Saudi Arabia does produce a lot more oil than we do that was a cumulative number the amount of crude oil produced.
The amount of refined products made as well -- -- the statistic that.
Was it a day or at time closing your college with -- -- during the afternoon yesterday that.
For the first time ever the US is producing more domestic oil -- it is important that's right and I think that says a tremendous apps.
Louis and that was the have a couple weeks ago in the EIA weekly data report.
It appeared to be a flash in the -- however I think and Thom agree all agree with me that oh over the so over the course of the summer.
Obligated up on a more consistent basis -- does that mean we'll see some.
Breakdown in the price of oil well that -- ARRIS yeah I think -- it could have the potential to bring the price of oil down.
Weren't what got us to this point is the technology.
With the Shell Oil play.
-- the Bakken -- for example in North Dakota.
They've been around since the fifties actually the only problem is we've only recently had the technology to real advantage of -- real economic -- in terms of jobs and overall growth.
I think so and the real game changer actually and this is not something we we track on.
More from the periphery but natural gas right natural gas prices in the US are probably about a third of what they are in Europe.
About a quarter of what they are in Japan so that's where we get the real advantage.
Refineries chemical plants and industrial plants that use natural gas.
They're going to be real cost advantage and perfect example -- that a refinery Nova Scotia recently.
Saint Croix in Aruba those refineries have to shut down because they don't have access to that cheap natural gas.
About what this means for the Keystone Pipeline such a political lightning rod right now but if -- got so much access right now to domestic oil production.
Does that lessen the importance of keystone or does it just continue because again -- is already just reach this.
It's fever pitch in politics yet fewer pitches.
-- -- right with that.
If you go either way I think you you know do you have an adult obviously bring more oil to the Gulf Coast refineries.
But Gulf Coast refiners -- word PowerPoint quite a bit of oil with some other point reversals that have happened within the last couple years from.
Whether it's coming from WTI and the Cushing hub where the delivery of the nymex futures are.
So editors did it could help.
Obviously but there's also the potential for oil to be exported which is -- even bigger political issue.
Got a split but so curious that gas prices the -- -- July weekend up or down vs last year.
-- -- down we're right around 350 a little bit less right now but.
Outside of Alaska and Hawaii boot entire country no state is above four dollars a gallon at this -- compared to where we've been very recently took the.
All right and thanks so much my pleasure.
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