By MarEx 2015-08-14 15:53:24
The U.S. will allow limited sales of crude oil to Mexico for the first time. The Commerce Department has informed Congress that it will approve a number of licenses to export U.S. crude oil in exchange for Mexican oil. The licenses will be issued at the end of August and will be valid for one year.
The approval comes eight months after Mexico formally requested a swap. The shipments are likely to be lighter, high-quality shale oil which will help Mexico’s refineries produce more premium fuels.
The Commerce Department has also denied several swap applications with European and Asian.
The move may also bring the U.S. one step closer to lifting its oil embargo. The decision to approve oil trade with Mexico comes a little more than a year after the U.S. allowed companies to export ultralight oil to foreign buyers.