A recent decision by the energy committee at the USA’s senate to endorse a draft bill to remove the ban on US oil exports left no tangible impact on global oil markets, according to experts.
A number of oil affairs pundits told Al-Riyadh newspaper that the US would become a major competitor in the oil market if the draft legislation were endorsed.
They noted that oil markets currently have supply surplus of three million barrels a day.
They stressed that the Chinese economy remains the prime concern of observers and markets alike, as a possible slowdown in China’s economic growth will have a major impact on crude oil prices.
Oil analyst Muhammad al-Shatti says the US draft bill – if endorsed – will place additional pressure on the already-strained oil prices. However, the decision needs time and market reaction will mainly depend on the quantity of crude the US will export.
Al-Shatti asserts that it’s difficult to deliver an exact estimate of how much crude the US will export, but it’s expected to be no more than 300,000 barrels a day.