. An initial auction of U.S. crude oil destined for the export market was held on March 5, attracting interest from 17 firms from around the world. Glencore was the winning buyer at the first auction, taking delivery of a cargo priced at $0.46 premium to the physically-delivered WTI Houston futures contract. A second successful auction took place on April 4.The March 5 auction was the first time in history that U.S.
The auctions have a further benefit to the broader market. By increasing the transparency of the price of U.S. exports, international buyers are better able to judge the relative value of importing U.S. crude compared with oil from other regions such as the North Sea or West Africa. Greater transparency will help to encourage the take up of U.S. crude oil around the world.
The transformation in U.S. production levels has been driven by technical innovation so it is fitting that innovation in the form of electronic auctions and new derivatives contracts is helping the shale industry to maximize its global reach.