At 11:32 GMT, Light Crude Oil Futures are trading $63.36, down $0.01 or -0.02%.
OPEC+ Production Gains Undercut U.S. Export Demand
U.S. crude is increasingly facing headwinds in export markets as OPEC+ ramps up production. Since April, the alliance—led by Saudi Arabia and Russia—has added or pledged to add 1.37 million bpd back into the market, roughly 62% of the planned 2.2 million bpd supply return.
This surge comes as global refiners, particularly in Europe and Asia, gain access to a wider slate of crude options, reducing their reliance on U.S. light sweet grades.
Exports of U.S. crude slipped to 3.8 million bpd in May from 4 million in April, according to EIA data. Notably, flows of light sweet crude to Europe fell to 1.4 million bpd from 1.6 million.
Traders are seeing price erosion in key U.S. grades: WTI-Midland’s premium to U.S. futures has dropped 45% since March, while Light Louisiana Sweet has fallen about 30% to a $2.70 premium.
European and Asian Refiners Shift Toward Medium Sour Crude
The demand slowdown is tied to refiners’ shifting preferences. While light crudes are simpler to process, global investments in refining infrastructure are favoring medium and heavy sour crudes, which offer better margins when priced lower. As Europe prepares for peak summer output and Asian refineries exit turnaround season, demand has skewed toward medium grades—further reducing appetite for U.S. light sweet barrels.
