The price of US oil rose today (14/05/14) following reports that Washington is researching whether the longstanding ban on crude oil exports should be lifted.
Department of Energy Secretary, Ernest Moniz has reported that the government is reviewing the issue of crude oil exports, due to the mismatch between rising supplies of crude and the US refining capacity.
WTI rose US$1.11 in New York trade after Moniz’ comments, while Brent gained 83 cents in London.
Moniz cited that unsatisfactory transportation links could pose a potential threat to the outflow of supplies from storage hubs once the ban is lifted. The development of pipelines in different regions, namely the Keystone XL pipeline, still raises concerns.