White House weighs oil product export restrictions

The White House in Washington DC under dark stormy clouds

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  • According to sources cited by Bloomberg, the White House is weighing oil product (gasoline, diesel, etc.) export limits.
  • The limits under consideration would fall short of a comprehensive ban, according to Bloomberg sources.
  • Curtailing exports could have geopolitical repercussions, as Europe struggles with product shortages as well.
  • West Coast (CVX) (PARR) and Northeast (DAL) refiners could benefit from higher prices, as the two regions would likely still require imports; however, Gulf Coast (VLO) (MPC) (PBF) product markets could become rapidly oversupplied.
  • Waiving the Jones Act would increase the ability for refiners in the Gulf to move product to other regions of the country.
  • For speculation at first-order outcomes of a ban, see this post about the ongoing refining crisis.

William Murphy

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