FX.co ★ US government allows more exports of ultralight oil

The US government announced its plans to allow some private companies to export ultralight oil, oil condensate that had been processed through a basic distillation tower. The US Bureaus of Industry and Security at the Department of Commerce did not name the applicant companies. Recently the Obama administration has allowed exporting ultralight oil to such companies as Pioneer Natural Resources and Enterprise Products Partners. The unrefined crude oil is prohibited for exports (Canada is the only one allowed), and businessmen of the oil sector have been challenging the ban which was set to ensure energy security in 1970s after the severe oil crisis. The major oil suppliers are worried that American oil can add to yet abundant supply on the world oil market. Qatar statistics shows that crude oil supply exceeds the demand by 2 mln barrels per day.