Export of refined products increased since lifting of export ban on crude

Fuel Fix:

Demand abroad for U.S. diesel and gasoline continues to increase, the U.S. Energy Information Administration reported Friday.

In 2015 U.S. refineries exported 4.3 million barrels a day of petroleum products, an 11 percent increase from the previous year.

Exports have been rising steadily over the past decade, as new drilling technology opened up shale fields across Texas and other oil-rich states and revived lagging domestic crude production.

With U.S. demand relatively flat, refineries along the Gulf Coast, as well as around New York and California, have been shipping increasing amounts of the fuels they produce abroad.

Their biggest customer remains Mexico, which on a daily basis imported 143,000 barrels of diesel and 307,000 barrels of gasoline last year.

High output from U.S. refineries, along with a mild winter, continue to push down diesel prices, EIA said.
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Refiners had opposed the lifting of the export ban on crude hoping to cling to their price advantage for cheaper lock in US oil production.  It turns out they did not need to remain competitive.

That Mexico is the biggest customer for US refineries must have escaped the Trump campaign which has suggested it will launch a trade war with Texas's biggest trading partner.  That is the opposite of smart trade policy.