Once unthinkable, in December 2015 the U.S. decided to lift the nation’s 40-year ban on crude oil exports driven by a boom in domestic drilling and production. Until then, our crude exports just went to Canada, awarded an exemption to import U.S. petroleum.
Now, some 17 months later, the shift that the U.S. has brought to the global oil market continues to reverberate.
The agreement between OPEC and some major partners like Russia to reduce production by 1.8 million b/d has allowed the U.S. to grab more market share of the ever-growing 97 million b/d global oil market.
With the surpassingly very high level of compliance for the cuts, the Middle Eastern crude benchmark Dubai has been strengthening, allowing more crude to flow west to east. Asia's refineries have jumped at this open arbitrage to buy more U.S. grades.
Since 2008, U.S. crude oil production has nearly doubled to 9.35 million b/d, helped by the rise in prices starting at the end of November. Yet, Read the rest here