Crude goes up as Saudis reduce supplies to America

Crude goes up as Saudis reduce supplies to America

On Friday, crude added, backed by a dip in Saudi exports to the United States, though markets remained under pressure on the back of a world market glut with fuel.

Brent crude futures LCOc1 hit $50.63 per barrel, growing 7 cents from their previous close.

In America, West Texas Intermediate crude futures CLc1 inched up 12 cents, trading at $47.82 a barrel.

Market participants told that the lift in prices came as a report that Saudi Arabia's oil exports to America in March would edge down by nearly 300,000 barrels per day from February, which is in line with OPEC's agreement to cut supply.

In the USA, overseas crude suppliers such as Saudi Arabia have to compete against surging shale drilling, which has pushed up American crude output by more than 8% since mid-2016 to above 9.1 million bpd.

To other key consumer regions, Saudi exports remain high notwithstanding an effort led by the OPEC, and backed by other crude producers including Russia, to drop output by 1.8 million bpd during the first half of 2017 just to suppress a global supply.

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