US lubricates oil export restrictions


Thursday, 26 June 2014 - 15:56

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US has given permission to two firms to export oil, after it has been lightly processed - a move that could see oil exports from the US increase.

Exports of unrefined crude oil produced in the US have been mostly banned for nearly four decades.

But there have been calls to ease that ban, not least due to rising oil production and a shale oil boom.

However, the White House said the move by the Commerce Department did not indicate a change in policy.

The US Commerce Department, which controls oil exports, has given permission to Pioneer Natural Resources Co and Enterprise Products Partners to ship a type of ultra-light oil to foreign buyers.

However, some analysts says that the latest decision was unlikely to have an impact on domestic fuel prices.

Meanwhile, analysts also suggested that the ruling could see other firms take a similar route of processing oil in order to make it eligible for exports.

Courtesy:BBC

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