Americas News
Lifting Of U.S. Crude Export Ban Won't Have Impact For 2 Years: ESAI
ESAI Energy Tuesday wrote that a new deal to allow oil exports from the U.S. is unlikely to give a lift to the country's oil producers for two more years.
The group highlighted a bipartisan agreement apparently struck in U.S. Congress this week, which would lift a longstanding ban on American oil exports, noting that the White House has signaled it will not veto such a deal.
However, ESAI noted that "the global surplus and low global prices will limit if not prevent any net increase in U.S. crude exports, at least until 2018."
It was said that U.S. exporters will be "selling into a remarkably glutted global market" that currently faces a "surplus of at least 600,000 b/d in 2016."
ESAI acknowledged however that "greater trading flexibility within the global market will benefit U.S. producers in the long run."
Most exports over the next two years would likely consist of movements within vertically-integrated companies, as well as "quality swapping" of light crude exports for medium crude imports, according to the group.
"U.S. crude exports beyond Canada may end up little more than a quality balancing exercise," ESAI noted.
In August, Ship & Bunker reported that the U.S. was beginning to swap crude with Mexico in an apparent first step toward a lifting of the crude export ban.
