America has allowed its oil companies to export oil as announced in private letters to oil companies. This will, for sure, cause a stir in the global oil markets and lead to lower prices. Global oil prices previously soared due to the fall in the supply of oil- stoppage of oil exports by Libya, and broad turbulence in Nigeria. About 3.5 million barrels, out of the total 90 million barrels of oil consumed daily, were taken off the market. The US decision to allow the export of condensate (an extremely light oil) by two Texas companies, could have a dramatic impact if the Commerce Department provides a broader definition of what is condensate for export purposes. The type of crude oil being produced in US is too light for American refineries to process. If all of this light oil is exported, it would surpass the exports of Iraq seriously undermining oil prices.
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