Wednesday, December 30, 2009

Does the closing price of oil reported on the news reflect the price of just OPEC oil?

I understand that the US imports only about 30 some odd percent of it's oil from OPEC countries. It also gets some from Canada, itself (the US), and other non-OPEC countries. If this price that is reported on every day reflects only OPEC oil, why does our gas price track it so well. Can't we lean on other suppliers to make up for the OPEC price? Or, does that price reflect a global selling price - in which case, couldn't those agreements be broken?Does the closing price of oil reported on the news reflect the price of just OPEC oil?
No, the price reported is the global price.





What ';agreements'; are you referring to? Please come back and explain this in ';Additional Comments'; so that I may edit my answer.





And actually, the US gets more than half it's oil from OPEC countries (see link).





Edit: Yes, Canada, or anybody else, could sell oil to the US at a lower-than-market value, but why would they want to? Sure, the US would love it, but what would be the benefit to Canada to do so? They're not going to do it just because we want them to.

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