Export market for US crude oil will grow
Subject US oil exports. Significance When Congress in December 2015 struck down legislation that strictly limited oil exports, it was expected to unleash a flood of new US crude onto global markets. The actual fallout has been more complicated. Exports have hit record highs in recent weeks, but overall shipments by early August are actually lower than they were a year ago because of falling domestic output and fewer arbitrage opportunities. Still, US oil is finding its way to new markets across Latin America, Europe and Asia. Impacts Midstream companies will benefit from development of export infrastructure on the US Gulf Coast. Reduced WTI-Brent spreads will shrink the margins of US refiners. US producers, especially those in Texas and around the Gulf Coast, will benefit from having greater access to global markets. New US export routes will offer commercial opportunities for oil traders.