Oil Glut Could End 40 Years of US Crude Export Ban

The U.S. ban on exporting oil may not live to see its 40th birthday.
There’s growing momentum to kill the restriction and a deal could be reached before the end of the year as part of a broader spending and tax bill that’s making its way through Congress.

Proponents argue the restriction is terribly outdated. It was signed into law on December 22, 1975 when the OPEC oil embargo created a shortage that slammed the American economy with skyrocketing prices.

Today, the world has too much oil — thanks largely to the American shale oil boom. That’s why crude oil prices have crashed below $35 a barrel and a gallon of gasoline is on the verge of falling below $2 per gallon.

In other words, there is no longer an oil scarcity that justifies keeping it at home. In fact there’s too much of it.

“Restrictions on free trade of energy are a legacy of a bygone era that doesn’t reflect the realities of today,” said Jason Bordoff, a former energy adviser to President Obama who testified on Capitol Hill about this issue.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza