Demand for US light sweet crude drops as OPEC+ ramps up output

Since April, OPEC+ countries have made or announced increases totaling 1.37 million bpd, or 62% of 2.2 million bpd they aim to add back to market

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NEW YORK: Rising OPEC+ supplies and new streams of oil coming online globally are increasing options for European and Asian refiners and weighing on export demand for light sweet US crude, contributing to lower prices in the country's main oil-producing regions, Reuters reported.

The US, the world's largest crude producer, is facing increasing competition as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) pump more oil in a bid to regain market share and punish members that over-produce.

Since April, OPEC+ countries including Saudi Arabia and Russia have made or announced increases totaling 1.37 million barrels per day (bpd), or 62 per cent of the 2.2 million bpd they aim to add back to the market.

The additional supplies come at a time of broad uncertainty for global oil producers as they assess how volatile trade policies are impacting the world's economic outlook and prepare for a longer-term future in which greener fuels could displace their barrels.

For the US, lower demand for a significant portion of its crude will likely add to a complicated outlook for producers already digesting on-again, off-again tariffs from President Donald Trump's administration.