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Venezuela Could Be Driving Up Gasoline Prices in the U.S.

Thursday - 4/4/2013, 7:37am  ET

Americans have been hearing a lot about the rapid increase in oil production within our borders. However, the lack of this connection to the price of gasoline at the pump has many of them questioning the dislocation. With supply increasing and domestic demand decreasing, shouldn't the price be reduced to a point of equilibrium? It's basic economics, right?

Unfortunately, we aren't the only consumers of gasoline
If the United States were isolated in a vacuum, my answer would be a resounding yes. Unfortunately, that simply isn't the case. Exports have been growing at an alarming rate for gasoline used in automobiles. Since 2000, Mexico has been the dominant purchaser, but as of November 2011 Venezuela has been opening its ports at an alarming rate. 

Recent Venezuelan activity
From November 2011 until January of this year, it has gone from importing next to zero gasoline from the U.S. to accounting for 20% of our total exports now. What has this meant for American drivers? Tune in below to find out.

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