- Saudi Arabia is cutting its U.S. oil exports to a near three-decade low for this time of the year, WSJ reports, a move it hopes will reinforce OPEC's production cuts and work down the global supply glut.
- Saudi Aramco reportedly expects sales to the U.S. will drop below 1M bbl/day in June, then slide to 850K bbl/day in July, which would be its lowest export total to the U.S. for the month since 1988, and to 750K in August, which would be the lowest export amount for that month since 2009.
- Declining exports to the U.S. show that Saudi Arabia is “getting serious” about addressing the supply glut, says Credit Suisse (SIX:CSGN) energy strategist Jan Stuart, but skeptics say Aramco cutting shipments to the U.S. does not necessarily mean the global glut is shrinking, or could reflect other factors such as rising U.S. production means domestic refiners need less of Saudi Arabia’s crude.
- ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
- Now read: Saudi Arabia To Slash U.S. Oil Exports, But Will It Be Enough?
Original article