US crude oil production  

The US is the world’s third-largest crude oil producer. The EIA (U.S. Energy Information Administration) reported that US crude oil production rose by 15,000 bpd (barrels per day) to 9,320,000 bpd on May 12–19, 2017. Production rose 0.2% week-over-week and 6.3% year-over-year. Production is near the highest level since August 21, 2015. The rise in US crude oil production pressured crude oil (IXC) (IYE) (USO) prices. As a result, prices are down 8.8% YTD (year-to-date). Lower crude oil prices have a negative impact on oil and gas producers’ earnings like Devon Energy (DVN), Sanchez Energy (SN), and Goodrich Petroleum (GDP). Read Could US Crude Oil Production Push Production Cut Deal Past 2017? for more on monthly US production.

Canada’s crude oil production 

Canada is the world’s seventh-largest crude oil producer. The IEA (International Energy Agency) estimates that Canada’s crude oil production could hit 4.7 MMbpd (million barrels per day) in 2017—200,000 bpd higher than 2016.

Analyzing the US, Canada, and Brazil’s Crude Oil Production

Brazil’s crude oil production

Brazil is the world’s tenth-largest crude oil producer. The IEA estimates that Brazil’s crude oil production could hit 2.8 MMbpd in 2017—200,000 bpd higher than 2016.

Rising production from the US, Canada, and Brazil

Wood Mackenzie estimates that US crude oil production could rise by 950,000 bpd during the possible nine-month extension of the production cut deal. The EIA estimates that US crude oil production will likely hit a 48-year high in 2018. So, the US, Canada, and Brazil could add ~1.2 MMbpd of crude oil in the next nine months. It would offset the reduction in supply from major oil producers’ production cut deal. It would pressure crude oil (XLE) (XOP) prices.

In the next part of this series, we’ll take a look at US gasoline inventories and how they impact gasoline and oil prices.

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