US Oil Exports: A Concern for Oil’s Rise?

US oil exports

In the week ending March 15, US oil exports were at 3.39 MMbpd (million barrels per day)—the second-highest level. New pipeline infrastructure is helping US oil production to be more economical and ready for exports. By the end of 2019, additional development in the oil pipeline infrastructure will likely bring more US oil to the international market, which might be a concern for oil’s rise.

Any cap on oil’s upside could impact US upstream stocks like Chesapeake Energy (CHK) and Concho Resources (CXO). However, the rising volume might compensate for lower oil prices.