President Barack Obama signed a bill on government spending for 2016, which contains the abolition of the ban on American oil exports. This was reported by Fox.
“Today I signed the budget. Not thrilled with it – I think everyone knows that – but it is a budget that, as I insisted, involves the allocation of resources to our military, and the middle class,”- said Obama at his press conference.
Both houses of the US Congress approved the document on December 18. Earlier, Congress agreed that the Houses would agree with on the cost of the state apparatus in the amount of $1.1 trillion in exchange for lifting the embargo on oil exports.
The ban on oil exports was set in 1975. In August 2015 the ban was partially lifted: the authorities allowed limited exports to Mexico for 1 year. Also, two companies allowed in 2014 to sell condensate abroad.
As pointed out by Bloomberg, the complete lifting of the embargo does not mean a significant increase in foreign sales of American oil. Raw materials produced in the US are slightly cheaper than other brands, and the cost of transportation can make deliveries abroad unprofitable.
After lifting of the embargo was approved by the US Congress, oil prices went down. In the evening of December 18 a barrel of Brent dropped to $ 37, and a barrel of WTI fell below $ 35. Then prices resumed their growth. The signing of the document has slightly affected the price: it fell to $34.77.