Link for the curious: http://www.bloomberg.com/news/articles/2016-03-18/from-china-to-switzerland-u-s-crude-oil-exports-go-mainstream
Due to a ban on oil exports, American oil has not seen the coasts of foreign nations for 40 years. However, December 31st of 2015 marked the first overseas sale of American oil since the ban was lifted. And since that first sale, American crude oil has been flowing to every corner of the globe and reshaping the "world's energy map".
Thus far, American tankers filled with an abundance of crude have docked in nations such as France, Germany, Netherlands, Israel, China, and Panama and are looking to also reach places such as more European nations as well as the Mediterranean. Companies such as Exxon and Chemical Corp have joined other independent traders such as Vitol Group in exporting oil abroad.
Although domestic oil continues to make its way across the pond, the United States is not expected to become a large exporter of oil compared to OPEC giants Saudi Arabia and Iran or non-OPEC contributors to the market, Mexico and Russia. However, shipment by shipment the volume of oil sales are growing.
I think it is very interesting and encouraging to see the US begin its oil exports after such a long hiatus. Will the emergence of the US as an international supplier help the oil market regain stability? Will this boost consumer confidence in the face of volatile markets abroad?
Very cool article Trey! I dont necessarily think that the emergence of the US will help the oil market regain stability, but I don't think it will hurt it that much. Sure, there is more oil in the market now which might bring prices down a bit, but I do believe that this will help the United States stabilize in the oil industry for the long run, which will be good to see for the U.S.
ReplyDeleteYeah that interesting. I wonder how the influx of American oil in the foreign economy impacts the price of oil for competitors too. The US adding to its repotiorie of exports oil could be positive in supporting abroad markets and strengthening its own. Time will tell...
ReplyDeleteI thought that this article was very interesting. I am interested to see how this exporting of American oil to other country's will effect the price of oil in the U.S. Since the supply is going down but the demand hasn't changed that should mean the prices for oil will increase. But as Samuel said time will tell..
ReplyDeleteIt is interesting to see that "oil traders are starting to export American crude to store it overseas and profit from a market condition called contango." Oil traders store crude oils at a cheaper price so as to gain profits from different prices during few months. By freezing a proportion of oil products into inventories, they could create or preserve more profits in the future.
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