91 octane and diesel were at $5.79.9 today.
Cheapest local gas (in cash) $5.29.9 but I could get it cheaper in Fresno, about 5 miles away.
My understanding is that there is a maritime shipping regulation designed to stop coastal smuggling back when they started the Coast Guard, and it does not allow ships of certain size to go from American port to American port without stopping at a foreign port in between.
I don’t know why this still exists, but it means that oil from the gulf coast has to go across the country by rail or truck, which is expensive.
Also there is a certain amount of sulfur allowed in oil, and we are pumping much sweet crude, with low sulfur content. They are shipping Russian sour crude here, to dilute it up to the maximum amount sulfur permitted by law. This saves the oil refiners a lot of money.
Please don’t quote me on any regulations regarding maritime laws and procedures. Most of what I know comes from a World War II navy manual I read from the age of six.
I don’t know what the shipping situation is right now, but I wouldn’t be surprised if there are several full tankers sitting off the shores of San Diego right now, waiting to pump oil out.
So last year we bought almost 700,000 barrels of Russian crude oil. We also bought oil from Venezuela and other disreputable places like Saudi Arabia.
Because oil from OPEC countries must be purchased using US dollars, according to a protectionist scheme devised in the 70s, there is a lot of criminal activity involving the situation.
Now imagine if you were supposed to be paying in US dollars, but because you managed to bribe some diplomats with a money problem, you were able to arrange an exchange contract where the oil you bought didn’t come from an OPEC source but instead from a middleman. Who paid for it with drug money, in dollars, to his brother-in-law in Equatorial South America.
You purchase the oil from them in Elbonian Pierzynski’s or bitcoin. This is money laundering on a bazillion dollar scale.