RIYADH: Saudi Arabia will cut its oil exports to the U.S. in a continued effort to reduce a global supply glut cramping prices, the Wall Street Journal reported. State-owned Saudi Arabian Oil Co. will reduce U.S. exports to about 1 million bpd in June, then 850,000 bpd in July. That’s the lowest level since 1988, according to EIA data. August will bring another decline to 750,000 bpd, which is the lowest export amount for that month since 2009. OPEC in November announced a production cut for global suppliers, but the U.S. has filled a large part of the void. Saudi Aramco increased U.S. export prices for light and medium grades by 50 cents for July shipments to keep the U.S. from stockpiling oil.
Crude prices have declined 9% in the last three weeks and 14% this year. Nvidia underwent a “key reversal” on Friday that could send the stock plunging another 36%, BMO technical analyst Russ Visch said in a new note. Visch points out that normally, these pullbacks tend to lead to the stock falling back to its 200-day moving average. In the case of Nvidia, the 200-day moving average is $96.70, or $36% below Monday’s closing price of $149.97. “Considerable downside risk exists here,” said Visch. On Friday, shares of Nvidia were off to another big rally, hitting new all-time highs of $168.50 following an analyst pontificating the stock could surge to $300. But the party abruptly ended Friday afternoon and continued into most of Monday’s trading session. The reversal in one of the hottest tech stocks around spooked the market, pressuring shares of other high-flyers in the space such as Amazon (AMZN) and Apple (AAPL).
