Oil Imports SURGE

"When young professionals and the socially hip raise chickens in their backyards, newspapers do articles with slideshows. When us Mexicans do it? People call code enforcement."  Gustavo Arellano, who writes the "Ask A Mexican" column for the Orange County Weekly

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Oil imports over the past 4 weeks are surging when compared to the same period last year, increasing about 5% YOY.  Domestic production is up decently over the last 3 years.  We have very, very cheap money.

The stock market loves it, especially the energy sector.

So why are Oil prices so still high? (Front month might be down to $86+ but December 2011 futures are $94+).  I don't know... what I DO KNOW (or what I claim I know) is that the U.S. is clearly no longer the price determinant market place for Oil.  Further.... NOTHING moves in a straight lines. Even if Oil exports are in permanent decline, that does not mean that the balance of Oil imports to the importers will decline in an orderly fashion.

Oil is in a bull market (but not correction proof!!), and is likely to stay that way until it chokes off the economies of the importers.