It’s actually illegal to export; I presume there is some sort of waiver re: a border refinery.
But the spread between domestic (95ish) and BRent (115ish) is absurd. You know coastal Texas people would export in a second.
Oil would have to drop $20 for the price to change domestically.
Crude oil exports are restricted to: (1) crude oil derived from fields under the State waters of Alaska’s Cook Inlet; (2) Alaskan North Slope crude oil; (3) certain domestically produced crude oil destined for Canada; (4) shipments to U.S. territories; and (5) California crude oil to Pacific Rim countries.
http://www.eia.gov/dnav/pet/pet_move_expc_a_ep00_eex_mbbl_m.htm
Alaskan North Slope Crude Oil was banned from export until 1995 with the West Coast oil glut. About 5% was exported until 2000. None is exported since but it is still legal, just not cost effective while our west coast is importing more than Alaska produces.
Key factors behind the recent narrowing in the Brent-WTI Spread
http://www.eia.gov/oog/info/twip/twiparch/2013/130605/twipprint.html
Also the spread exists because the US is importing Brent into the US to help meet our demand. If our production rose to where we were a net exporter, the market would change.
WTI has been at a discount because it is landlocked with insufficient pipeline capacity. It is not a factor of export rules.
Look at the similar quality Louisiana Light Sweet delivered to St. James Louisiana. It is on the coast and has kept price match with Brent.
The article linked below is a bit dated, but it shows how LLS stayed with Brent while WTI fell below.
Recent gasoline and diesel prices track Brent and LLS, not WTI
http://www.eia.gov/todayinenergy/detail.cfm?id=3670
This will explain the WTI / Brent better than I did.
Brent-WTI Spread Shrinks to $5 for First Time in 2 1/2 Years
http://www.bloomberg.com/news/2013-07-01/brent-wti-oil-spread-shrinks-to-5-for-first-time-in-2-1-2-years.html
Jul 1, 2013
The difference between the worlds two most-traded crude oil grades shrank to less than $5 a barrel for the first time in about 2 1/2 years, underlining the easing of a supply bottleneck in the U.S.
North Sea Brent crudes premium to West Texas Intermediate narrowed to as little as $4.77 a barrel today. Its the first time the spread between the two grades has been at $5 or less since Jan. 18, 2011, on an intraday basis, according to data compiled by Bloomberg. WTI, the main U.S. crude grade, had been typically the more expensive grade until mid-2010.
The drop in the gap between Brent, a gauge for more than half the worlds oil, and WTI shows how improved pipeline networks and the use of rail links have helped to unlock a glut at Americas oil-storage hub at Cushing, Oklahoma, in line with a prediction made by Goldman Sachs Group Inc. as long ago as February 2012. WTI rose 5.2 percent in the first half of this year. Brent dropped by 8.1 percent as North Sea supplies have stabilized following oilfield maintenance.
- more at link -