American oil, what’s that?
Texas energy company Enterprise Products Partners has announced the first US supply of oil for export for the last 40 years. The company intends to ship around 600 thousand barrels of oil from the terminal in Houston the first week of January, reports Reuters.
The press office of Enterprise Products Partners has pointed out that this lot is supposed to be acquired by the Dutch oil company Vitol.
According to Reuters, such plans have caused confusion among many players in the market since export to any volume seems inexpedient with the current price of Brent crude oil.
The announcement of the oil export imminent start from the United States was followed only a week after US President Barack Obama signed the federal budget for 2016 included the provision for export ban cancellation, in force since 1975.
Restrictions on the export of oil have been introduced after the oil crisis in the 70s, when the Arab countries have established an embargo on oil supplies to the West. Obama has held the opponent position to lifting of a ban for a long time as Republicans insisted.
The experts have mentioned that the world access to the light crude oil from the US may drop the Brent price to around $30. However, the build-up of supplies to the European market will allow the US to implement their energy ambition and become one of the largest producers and exporters of hydrocarbons.