Falling tanker freight rates — the cost of shipping crude by sea — are easing transportation costs for U.S. crude shipments. This makes it more economical to export barrels overseas.
Lower shipping costs are boosting the outlook for U.S. crude exports, especially for light sweet crude grades, which are in demand in global markets.
Despite the positive export outlook from lower tanker rates, oil prices were trading lower, as other supply-side factors influenced sentiment.
Reuters reports that futures slipped after news of increased Venezuelan crude imports into the U.S. under a new agreement — this adds to global supply pressure.