With the move late Tuesday, the Energy Department is allowing Cheniere to export as much as 2.1 billion cubic feet per day of liquefied natural gas over the next 20 years from the planned facility to countries with which the United States does not have free trade agreements.
The American Fuel and Petrochemical Manufacturers, which commissioned the analysis, hopes it will debunk oil producers’ chief argument for crude exports by proving that refiners have the capacity to consume light, sweet U.S. crude.
Gasoline’s crack, or premium to Brent crude, rose to $13.46 a barrel on Tuesday, the highest since April 29, according to PVM Oil Associates Ltd, one of the largest brokers for the fuel, before falling to $13.13 at 1:21pm London time.
At issue is a Pemex affiliate’s request to export 100,000 barrels per day of light U.S. oil and condensates in exchange for heavy Mexican crude — a transaction that can be approved by U.S. regulators on a case-by-case basis under existing trade laws.
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