Goldman Sachs has said that the release of oil from reserves and any ban on oil exports from the United States are ineffective.
The United States currently exports about 3 million barrels of crude per day. If this export ceased, domestic pipelines would be unable to re-route this crude to US refiners. Refiners don’t have enough capacity to process it.
- “This would let the excess supply of American crude quickly reach the level of the reservoirs and force the shutdown of production, with investment and production soon to experience significant declines.”
Cutting this source of supply to other markets would push up Brent prices further. Which in turn would lead to higher gasoline prices.
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