The US has overtaken Saudi Arabia to become the top global exporter of oil, according to the International Energy Agency (IEA).
In a monthly report, the International Energy Agency said, “With oil prices currently about 20 percent lower than a year ago, there will be support for consumers.”
With regard to the US becoming the top global oil exporter, in the same statement, the International Energy Agency said, “Booming shale production has allowed the US to close in on, and briefly overtake, Saudi Arabia as the world’s top oil exporter in June, after crude exports surged above 3 million barrels per day (bpd).”
A surge of 3 million barrels of per day means the US exports around 9 million barrels of oil per day. Saudi Arabia, on the other hand, reduced its supply of crude oil and other energy products. Saudi Arabia’s decision to cut export is a part of the Organisation of the Petroleum Exporting Countries (OPEC) member’s effort to boost prices.
The International Energy Agency further reported that US exports reduced during the months of July and August which was mainly due to the escalating US-China trade war and the disaster caused by hurricanes in the country. This resulted in Saudi Arabia regaining the top position and pushing the US back to number two.
The agency, however, expects the US to increase oil exports again and thus complete with Saudi Arabia to become the top global oil exporter again.
Recently, Saudi Arabia called out all oil producers to comply with OPEC’s output cut strategy to help stabilise the oil market.