Saudi Arabia to cut oil exports next month

Saudi Arabia will trim its crude oil exports to below seven million barrels per day (bpd) in April, revealed a Saudi official on Monday, in a bid to drain a global supply glut and boost oil prices.

Oil prices edged higher on Tuesday in response to the Saudi supply cut and news that the US government reduced its forecast for domestic crude output growth.

Brent crude stocks rose 9 cents (0.1%) to at US$66.67 a barrel, while US West Texas Intermediate (WTI) crude futures rose 8 cents (also 0.1%) to $56.87 a barrel. Both benchmarks have risen around 25% since the start of the year.

Crude prices have been boosted by a supply cuts agreement made by OPEC and its allies at the start of the year. The group, known as OPEC+, agreed to reduce supply by 1.2 million bpd for six months.

Saudi Arabia has voluntarily cut its supply by more than the deal requires and in April will keep output ‘well below’ 10 million bpd, the Saudi official said.

Meanwhile, In theUS, domestic crude production is expected to grow at a slower rate than previously anticipated in 2019, averaging about 12.3 million bpd, according to the US Energy Information Administration (EIA).

@RGNonline