We don't produce oil cheaper than the middle east. The could open the valve, flood the market, and stop drilling in its tracks in the US. They choose not to.
There is probably more to this news story as to why the oil is getting sold like that other than trying to go around the govt. It may be that there is a country that does not have refineries so they buy only refined oil. They probably use a small amount but pay a premier. I am sure the US imports some thing from them in return. There are all kinds of little countries that have some rare mineral or spme thing the US needs so we export oil to them in trade.
Conservatives spin this stuff too to hype there cause. It is an election year. It 89 degrees in Feb lets blame Obama for that too.
