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Can US Crude export ban resolve the steeping bearish trend and prop up its prices?

Developments on US exports: A provision to lift the 40-year old ban on US crude oil exports is the latest news relevant to crude market. The senate and the white house have announced a tax and spending package that includes this set-up.

The bill is expected to pass a Senate vote this week with bilateral support and faces little risk of a high-level refusal.

The change affects the market and energy equities in several ways, but not necessarily as expected.

How could this energy commodity react:

US exports would not be able to solve all of the congestions across the global price war and pricing problems in the US.

Bracing this oil export ban will only delay the timing of any control over oil prices.

Both WTI and Brent is narrowing upon the news as anticipated, but flaws have already been too contracted in long run.

We don't anticipate a stable return to the pre-shale pricing regime. When US production growth returns (likely post 2017, from lower levels), transportation economics should reassert themselves.

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