The U.S. consumes about 18 million barrels of crude oil per day.

Crude oil exports are restricted by the ‘Energy Policy and Conservation Act’ of 1975, which directs the President “to promulgate a rule prohibiting the export of crude oil” produced in the U.S. This act was passed after the OPEC embargo.

Crude Oil and the Macroeconomy

In a study from the year 2000, the International Monetary Fund (IMF) estimated a $5 increase in crude oil prices reduces global economic growth by 0.3% in the following year.

Also, since crude oil is used in the transport and production of many goods, it is a prominent driver of inflation.

Accordingly, it is closely watched by the Federal Reserve when setting monetary policy.