Amidst the news that employment data would be positive for the U.S., the price of oil fell slightly today. A slight decline was seen in the benchmark U.S. crude for March delivery too as it fell 16 cents at $97.68 a barrel at 0630 GMT in electronic trading on the New York Mercantile Exchange. In contrast, the contract rose 46 cents to close at $97.84 a barrel on Thursday.
According to market observers it may go up as the market is waiting for the U.S. non-farm payrolls figure which is going to be released today. They believe that market is positioning and book squaring prior to the jobs figure. Also, they think that with chilly temperatures across the middle of the U.S. and into the Northeast may create more demand for heating oil.
Heating oil price rose 1.1 cents at $3.006 a gallon. On the day’s trading, wholesale gasoline rose 0.6 cents to $2.689 a gallon. However, natural gas was down 2.4 cents at $4.955 per 1,000 cubic feet.
Plains All America Wants to Lift a Ban on the Crude Oil Exports
The U.S. government bans crude oil exports with a law which has been in existence for four decades. Now, Plains All American is saying that it has facilities in several locations in the United States that could export crude oil provided the 40-year-old ban on most crude exports be lifted. Earlier ForexMinute reported that due to the ban, crude prices in the US may hit the wall.
The U.S. which saw an unprecedented growth in crude oil production is facing a problem of lower oil prices which is becoming difficult for the producers who invested a lot of money. Now, lifting the export ban has become a hot energy policy issue. The producers are willing to explore the market outside the US for better prices.
As has been reported by ForexMinute the U.S. market is suitable more for higher grade oil; however, as the U.S. produces comparatively lower grade oil, it can be exported. In fact, the US energy industry is split on the issue. Whereas some oil companies favor allowing exports as their domestic barrels would fetch a higher price abroad, some oppose it as they benefiting from it.
Plain All America says that it has infrastructure e.g. pipeline, rail, terminal and trucking assets, etc. to export oil. Currently it has a 140,000 barrel per day (bpd) rail offloading facility in Yorktown, Virginia, and another 140,000 bpd facility at St James, Louisiana, the Mississippi River, etc.
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