Crude Oil Breaks 4-day Undone Layer After Saudis Slash Freight to U.S.

Crude Oil Breaks 4-day Undone Layer After Saudis Slash Freight to U.S.

Crude oil prices broke a four-day run of losses on Friday, heading higher after OPEC kingpin Saudi Arabia said it has cut its oil exports to the U.S. dramatically. West Texas Intermediate crude for May delivery CLK7, +0.42%  rose 22 cents, or 0.5%, to $47.92 a barrel, trimming its weekly loss to 1.7%. Brent for the same month LCOK7, +0.30%  added 24 cents, or 0.5%, to $47.94 a barrel, setting it on pace for a 1.7% weekly slide as well. Oil prices have been mired in red for most of the week, as U.S. stockpiles hit a record. That increase has stoked concern that production cuts agreed by 14 members of the Organization of the Petroleum Exporting Countries and 11 non-OPEC members aren’t enough to tackle the supply glut. A Saudi energy official said late Thursday that the kingdom’s crude exports to the U.S. in March have fallen by around 300,000 barrels a day, in line with the cuts agreed under the OPEC output deal, according to Reuters. The official also said exports are expected to remain around the March level for the next few months.The U.S. imported about 1.3 million barrels a day from Saudi Arabia in February, according to Reuters. Analysts at Commerzbank said the Saudi comments helped oil prices stabilize on Friday But they also pointed to data from consultancy firm Oil Movements, which for the first time showed a visible decline in OPEC shipments in tankers at sea.“The lower oil shipments have not yet been reflected in the inventory statistics, however. According to Reuters, OPEC actually shipped 5% more crude oil to Asia in March than it did in January. As such, the OPEC production cuts are not yet affecting actual available supply,” the Commerzbank analysts said.