The US started exporting crude oil after lifting the export ban in December 2015. China is the largest crude oil importer after the US. So far, China has imported 100,000 bpd (barrels per day) from the US in 2017. However, its imports rose to 180,000 bpd in May 2017. The rise in exports from the US will add to global oversupply. It’s bearish for crude oil (FENY) (FXN) (SCO) prices.

Lower crude oil prices have a negative impact on oil producers like SM Energy (SM), Chevron (CVX), Denbury Resources (DNR), and Noble Energy (NBL).