ENERGY/OIL/TRADE DEALS: “American oil exports are emerging as a disruptive new force in global markets.
The U.S. exported 1 million barrels of oil a day during some months so far this year—double the pace of 2016—and is on track to average that amount for all of 2017, according to a Wall Street Journal analysis of data from the U.S. Energy Department and the International Trade Commission.
In another era, a domestic glut and low prices, currently hovering under $50 a barrel, might have caused companies to slow the pace of drilling. But since Congress lifted a ban on oil exports at the end of 2015, shipments out of Texas and Louisiana have skyrocketed, taking the fruits of the U.S. fracking revolution to new markets…
While U.S. exports make up just 1% of global oil volumes, they are a new factor helping to tamp down prices and keep them rangebound between $45 and $55 a barrel. U.S. oil prices on Wednesday [6-7-17] declined more than 4% to around $46 a barrel after weekly inventory data showed a surprise increase in stockpiles.”
-Lynn Cook, “U.S. Oil Exports Double, Reshaping Vast Global Markets,” The Wall Street Journal online, June 7, 2017 11:19am