Report: Oil going through distillation tower not impacted by crude export ban

|By:, SA News Editor

All U.S. crude oil that is processed by a distillation tower - not just condensate - is exempt from the crude export ban, potentially widening the amount of petroleum U.S. producers can send to markets abroad, Reuters reports, citing U.S. government and industry sources.

By focusing on how the oil is treated rather than what it is, this week's ruling allowing two companies that produce condensate to export the oil if it is processed by a distillation tower appears to open an option for companies that produce traditional crude to get around the export ban by lightly boiling their own oil, the report says.

The new interpretation of the ruling will add to the speculation over how much of the U.S. shale oil boom might reach overseas markets.

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