EIA study predicts impact from newly legal domestic oil exports

The U.S. Energy Information Administration (EIA) issued a study recently that indicated what impact lifting restrictions on oil exports will have.

The EIA said that in 2014, domestic crude oil production rose to approximately 8.7 million barrels per day from 5.4 million in 2009. The report said that because of this, there has been growing interest in the possibility of mandating more-lenient measures or removing trade restrictions on oil altogether.

The EIA said gasoline prices would more than likely be unaffected or be reduced slightly. Another EIA report said gasoline prices are more closely tied with North Sea Brent oil pricing than domestic West Texas Intermediate Crude prices. The report indicates that if domestic supply were to increase more, it would create loose global balances between supply and demand. If this were the case, Brent prices could dip if other production cuts are not made elsewhere.

The report also said increases in domestic production would allow for possible price drops, as global oil prices depend on several factors, including technological enhancements and the availability of resources.