US-Mexico crude swap: Evolution not revolution

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18 August 2015

US-Mexico crude swap: Evolution not revolution

Report summary

 The US Commerce Department has indicated it will allow a number of applications to exchange US for Mexican crude oil, continuing the incremental easing of the US export ban.  Though the volume of the swap is small, Mexico will benefit by increasing the value of refined products and taking a first step at improving the gasoline balance.  In this inform we discuss implications for US export policy and the Mexican refining industry.

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