Of course, when Texas peaked and could no longer meet the set targets, the US had to import at world clearing price. This was painless in the beginning, as it was not far from domestic price, and very low volatility (from the earlier period when the US was the N°1 producer of oil and a major, though declining, exporter).
When the embargo was enacted, the domestic set price made US oilcos unable to bid for very long internationally (they would buy abroad for more than refineries would pay, by law) and that was the real reason for the gas queues and shortages (the price at the pump did not budge at first, the oilcos just stopped selling it a loss).
It quickly became obvious that the price control was a suicide scheme and it was lifted in the midst of the oil shock (and fluctuating pump price was the next shock to americans). Pierre
But, in the broader sense, yes, it was the loss of price making power in the US by US swing producers that eliminated the system for stabilizing oil prices, and opened the way for Saudi Arabia to emerge as the most important swing producer. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
