FX.co ★ Lift of crude export ban to change the situation on global market

Europe is deeply apprehensive about the news from the United States, where the authorities made their mind to lift a ban on crude oil exports, Swiss Handelszeitung reports.
The U.S. has eased restrictions introduced about 40 years ago. From now on, Pioneer Natural Resources and Enterprise Products Partners are allowed to export a type of ultralight oil as a condensate overseas. According to Dominic Benz, the author of the article, Washington used a bureaucratic trick.
The Commerce Department redefined crude in a way that applies only to a form of ultralight oil since the condensate requires minimal processing. The agency ruled that such processing is enough to make these condensates no longer “crude.” However, Dominic Benz writes that there is no exact definition of ultralight oil provided by the U.S. authorities. Moreover, they pointed out that the export policy has remained unchanged.
The journalist seems to find out what plans of the Unites States are under the guise of the new ruling. In his opinion, America is set to become a major player in the world market, and Europe has something to fear. New Washington resolution is able to step up the global oil output and cut prices for “black gold.” That will take its toll not only on economies in the Middle East underpinned by oil refinery, but also on European oil companies.
The American “incursion” is a great cause of concern for Europeans since such an action might lead to problems in the labor market and affect the competitiveness of the local companies. Thus, despite the strong environmental effect, shale oil is gaining popularity now. Dominic Benz concludes that the ban removing will “shuffle cards of the global oil market players.”
An important point to remember is that the United States imposed a ban on such sales in 1970s to ensure the country’s energy security. Recently, thanks to the shale gas revolution the U.S. has boosted its hydrocarbons production, which returned to the historical levels. Many American oil and gas companies speak up for removing the exports limitations.