The United States has started doing something unprecedented when it comes to oil, and the impact is expected to grow into next year.
Tom Kloza of the Oil Price Information Service is alluding to the U.S. ramping up exports. It follows the 40-year ban that was lifted two years ago.
“The highlight you need to watch for the next few months is going to be more record breaking exports of crude oil. Our view is that it’s going to soften the price for Brent,” the firm’s global head of energy analysis said recently on CNBC’s “Futures Now.”
According to Kloza, it’s possible the U.S. will export 15 million to 20 million barrels of crude a week to several continents.
“That’s something we’ve never seen before,” he added.
Kloza, who accurately called the 2015 oil collapse, says it’s unclear how the phenomenon will affect the global markets, but he doesn’t expect a breakout to the downside.