U.S. crude oil production hit an all-time high in August, according to new data published by the Energy Information Administration on Tuesday, with production surpassing pre-covid levels.
U.S. field production of crude oil reached 404.6 million barrels during the month of August, new EIA data shows, for an average of 13.05 million barrels per day–squarely breaking the previous record U.S. drillers set in July of 401.73 million barrels.
Increases in production were seen in PADDs 1, 2, 3, and 4, with the largest percentage increase in production seen in PADD 4, which comprises Colorado, Idaho, Montana, Utah, and Wyoming. The largest actual increase was seen in PADD 2, which includes North Dakota, Illinois, and Kentucky, among other states.
Crude production in Texas in August—home to a large portion of the Permian Basin, rose from 173.775 million barrels to 174.562 million barrels.
Compared to this time last year, U.S. production is up by a total of 33 million barrels for the month.
The new record in crude production in the United States comes shortly after U.S. supermajor ExxonMobil spent $60B on purchasing another Permian player, Pioneer Natural Resources, although most oil companies in the United States have chosen fiscal restraint resulting in a slow and steady increase in output versus the no holds barred investment strategies during previous boom cycles.
Despite the record-breaking production levels seen in August, inventories of crude oil in the United States are estimated to be within 3 million barrels of where it began the year.
Analysts and traders have been watching drilling reports in the United States, with the latest count still 350 fewer active rigs than pre-pandemic levels.
Bitumen and petroleum products markets are still in uncertainties. Bitumen prices decreased in Europe, and in Spain has reached $456.
In the Middle East, bitumen price in Bahrain remained at $400, and Singapore is $520.
In Iran after several weeks of uncertainty, a new circular concerning the exchange rate was released on October 25. The impact of this circular on exports from Iran is yet to be determined, and market reactions to these new conditions need to be observed more closely in the coming days.
Prepared by Rumays specialists group.