Publications: The Petroleum Economics Monthly

Lilfting the Ban on US Crude Exports (June 2014)


Pressure to remove the ban on US crude oil exports is building in Washington, DC. Pressure related to light sweet crude supply is also growing in global markets. The growing global surplus of light sweet crude relates directly to the surge in US oil production. In the June 2014 resport, we explain the surplus. We also note that the supply increase is occurring as inventories in Cushing, Oklahoma, are falling due to new pipelines opening to the Gulf Coast. WTI prices, consequently, have moved into steep backwardation. These two developments—increased light crude supply and low stocks in Cushing—will bring a new dynamic to the world oil market. If unrestrained US crude oil exports are allowed and the assumptions of those who advocate for this prove wrong, the world could easily see crude oil prices drop. Past price wars have caused declines of as much as fifty or seventy-five percent. This time will not be different.


To view or download the report summary, please click the link below.