Trade Law

On August 14, 2015, the U.S. Department of Commerce’s, Bureau of Industry and Security (BIS) indicated that it would approve a number of export license applications permitting parties in the United States to swap crude oil with counterparties in Mexico. These decisions could open a new market for U.S. oil producers who are faced with an oversupply of light crude oil and have been previously foreclosed from this export market by the U.S. ban on crude oil exports. To take advantage of this opportunity, U.S. companies will need to structure swap transactions with Mexican companies that satisfy BIS’s criteria for approval. Companies may also want to consider engaging with lawmakers in Congress who are currently contemplating legislation to repeal the export ban on crude oil altogether.