Two days after President Obama last week signed the bill that repealed the country's four-decade ban on oil exports, US oil traded for more than the international standard for the first time since 2010.
Oklahoma oilman Harold Hamm and others who have lobbied for the change say the price reversal is a sign the world sees domestic light, low-sulfur oil as superior to international oil, much of which is denser and higher in sulfur.
“WTI is trading better than Brent, reflecting the willingness of the world market to pay for the exceptional quality of US light sweet crude,” said Hamm, chairman of the Domestic Energy Producers Alliance (DEPA). [more]
US oil is trading higher than the international standard for the first time since 2010 after President Barack Obama signed a measure last week lifting the nation's four-decade ban on oil exports, the Oklahoman reported Friday.
Domestic oil gained 60 cents to $38.10 a barrel on Thursday while oil produced elsewhere added 53 cents to close at $37.89.
Harold Hamm, CEO of Continental Resources, says it's a sign that the world sees domestic light, low-sulfur oil as superior to international oil, much of which is denser and higher in sulfur. [more]
Congress abolished the 40-year ban on oil exports this past week, a victory for oil companies and conservatives that few thought conceivable until recently. One thing made it possible: supporters absorbed the lessons of the Keystone XL pipeline, whose doom was sealed when it became a political battleground.
Supporters of lifting the export ban, including oil-state Democrats, cajoled potential liberal opponents, persuading them the policy change could work in their favor. They met repeatedly with skeptical Democrats, stressing that oil prices had fallen through the floor in part due to a supply glut, so ending the ban would likely not make them soar. [more]
Oil and natural gas industry leaders on Friday praised the repeal of the 40-year ban on oil exports, capping a four-year effort by some producers.
Continental Resources CEO Harold Hamm said oil exports will help domestic oil producers compete with other producing countries worldwide.
"I think this sets the stage for recovery in our industry," he said. "It will let us build out our markets in the rest of the world. I think it's going to mean a great deal for America." [more]