Long Run Explor Ltd Ord WFREF

RE:"How about the real guff on storage"

[rockman998]

You have mentioned one of the key elements in the oil glut that never seems to get talked about. The US imports of oil have stayed approximately the same over the last year while US oil production has increased by approximately 1 M barrels / d.  
So why is the US importing oil they don't need? to support the middle east? contractual obligations? or some other reason?
The North American production is still approximately 4 M barrel less than consumption, so there is no surplus re: domestic production. The surplus is created by importing too much oil. You never hear this side of the argument from American news agencies; they blame the surplus on American production.
So what happens when the storage is full in 3 months. My guess would be that they stop importing so much oil (except for Canadian and Mexican oil; which the refineries require), otherwise the US will have to shut in their own production. Although with Obama this is not a sure thing, he obvoiusly is not a supporter of the American oil industry.
What impact will this have elsewhere. Lowering imports will cause an additional oil surplus on the rest of the the world oil markets probably causing Brent to go lower than WTI.
Paying out less Amercian dollars for oil is also one of the many reasons for the strong US dollar and it will continue to put upward pressure on the dollar into the future and modestly affect currency markets.