US SHALE drillers will soon be able to sell their oil all over the world. Too bad no one needs it right now.
A congressional deal to lift the 1970s-era prohibition on shipping crude overseas has the potential to unleash a flood of oil from Texas and North Dakota shale fields into markets already flush with cheap supplies from the Persian Gulf, Russia and Africa.
The arrival of US barrels in trading hubs from Rotterdam to Singapore will intensify competition for market share between oil-rich nations, publicly traded producers and trading houses, adding pressure to prices that have tumbled 67 per cent in the past 18 months.
In the longer term, it may also extend a lifeline to shale drillers...