Obama eases oil export ban with big swap deal with Mexico – IOTW Report

Obama eases oil export ban with big swap deal with Mexico

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WashingtonTimes: In the latest move undercutting the longstanding ban on exporting U.S. crude oil, the Obama administration has approved a proposal that would trade American lighter sweet crude for heavier crude supplies from Mexico.

The license applications approved by the Commerce Department stop short of a direct sale of U.S. oil to a foreign buyer, but would allow for the exchange of similar amounts of U.S. and Mexican crude, under a deal first reported by the Reuters news agency. Mexico’s state-run Pemex oil company had asked for the right to acquire 100,000 barrels of American lighter, higher-quality crude oil from shale a day as its own production levels have fallen.

Although the department turned down other swap applications from Asia and Europe, the move is the latest weakening of the blanket ban on the export of U.S. crude oil first imposed at the height of the OPEC oil embargo in 1975. more

 

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