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Commodity Market Update March 21, 2019

Energy

Prior to 2014 crude oil produced in the US by federal law could not be exported.  When the law was changed in mid-2014, US crude exports increased to about 0.5 million barrels per day.  Starting in mid-2017 with increasing domestic shale production of crude oil, crude exports increased dramatically to 3.39 million barrels per day (Chart 1, black line).  With record crude oil production for supply, crude stocks can be at lower levels (Chart 1, red line). With strong exports and lower levels of crude stocks, US WTI crude oil prices will be supported and can be expected to stay above $60 a barrel.

Chart 1

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