As they say, oil is fungible--maybe the most fungible commodity in the world right now. If you were watching The Daily Show the other night, you might remember that Jon Stewart was asking who won the war in Iraq, and after some guesswork, it turned out that China did because China is importing almost all of the oil that Iraq produces. In a perfect market, it wouldn't matter that the oil went to China instead of Houston because the extra supply would drive down the price. But perfection is divine, I guess, so we're stuck with human error all over the place.
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