The oil producing group's 1.16 million barrel per day cut will reduce stocks of sour crudes as U.S. oil refiners ramp up purchases for summer driving season. Shell Plc's shut-in of its 375,000-bpdin the Gulf of Mexico last month because of a leak also reduced supplies, traders and analysts said.
"We see sour demand being quite strong globally," said Jenna Delaney, head of North American crude at consultancy Energy Aspects. New refinery capacity coming online east of the Suez Canal also will increase the call for sour barrels "for the remainder of the year," Delaney added.
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