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Saudi Arabia’s oil exports to the United States will fall by 300,000 barrels per day (bpd) in March, compared to February, Reuters reported, citing an unnamed Saudi energy ministry official.
The supply cut comes in line with the kingdom’s pledge to reduce output, as part of an OPEC deal last November.
The US imported about 1.3 million barrels per day (mbd) from Saudi Arabia last month, according to data from the Energy Information Administration (EIA).
“Exports may fluctuate week on week, but on average in March exports will be down,” the official said, noting that the kingdom will maintain exports at around March's level for the next few months.
“The cuts in exports will help the crude stockpiling in the US to go down,” he added.
US crude stockpiles rose to 533 million barrels in the week ended March 17, according to the EIA.
Higher US inventories have offset the positive impact of OPEC’s deal last November, wherein the producer group’s 13 members agreed to reduce output by 1.2 mbd to 32.5 mbd, in order to ease oversupply and boost crude prices.
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