Posted on 10/27/2017 1:25:58 AM PDT by TigerLikesRooster
Rising US energy exports could prompt seismic shift in Asian market
Middle East, Russia on defensive as cheaper fuel floods in
TAKESHI KUMON, Nikkei staff writer
TOKYO -- Energy markets across Asia could be about to undergo a huge overhaul. Driven by the shale drilling revolution, U.S. exports of crude oil and liquefied natural gas are growing rapidly and likely to make significant inroads into the market share held by Middle Eastern producers.
U.S. crude oil prices have been so low that new customers have even been found in India, while American LNG comes relatively free of restrictions -- a big draw for major buyers like Japan.
In early October, a supertanker docked at Paradip Port in eastern India carrying the first shipment of American crude oil purchased by the state-owned Indian Oil Corp.
At the end of 2015, the U.S. decided to lift its ban on the export of crude oil for the first time in 40 years. Pressure for exports had been mounting as growth in shale oil production had led to increased stockpiles.
U.S. crude oil exports have recently been boosted by relatively lower prices -- they fell after Hurricane Harvey hit the south of the country in August. West Texas Intermediate crude oil futures were sold on speculation that oil refineries in Texas would stop operating, which would leave some amount of crude oil unused and put downward pressure on new demand. The price difference between WTI futures and the European benchmark North Sea Brent crude futures was in the $2 per barrel range until early August, but has now widened to the $5 range.
(Excerpt) Read more at asia.nikkei.com ...
P!
What’s this got to do with cheaper oil prices because of US output?
The cheaper oil is the less reason to go to war on china’s part, I would think.
Making America first in Coal, LNG and Oil.
Russia and the Middle East at most risk....GOOD.
I can’t believe the US propped up the Middle East for 40 years by withholding exports, that is treasonous.
If you go back to 1973, we’ve been held hostage to the Middle East especially by the Saudis. Even more interesting is considering our actions in the Middle East when the Saudis interests are taken into account. In a nutshell it looks like we’ve been their Paladin, This Gun For Hire. Will work for continued oil supply.
That’s over.
We were an importer for the last 40 years. Fracking changed that.
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