US crude oil exports to gain tail winds from Saudi July output cut – Reuters

US crude oil exports to gain tail winds from Saudi July output cut – Reuters

HOUSTON, June 5 (Reuters) - U.S. crude oil exports, already running close to a record level hit in March, should get a further boost next month from deep production cuts in Saudi Arabia, analysts said on Monday, noting that this will also further deplete U.S. crude inventories, which have been hovering near historic lows.

Saudi Arabia, de facto leader of oil producer group OPEC, said on Sunday it would drop its production by about 10%, or 1 million barrels per day (bpd), to 9 million bpd in July. It said it might sustain the cut to support oil prices that have dropped due to worries about a potential economic recession.

The move opens the door for modest gains in U.S. and Latin American shipments to Europe and Asia, analysts said, and gives U.S. producers new confidence that Saudi Arabia will provide a price floor should a recession clip demand.