US crude oil production
The EIA (U.S. Energy Information Administration) reported that US crude oil production rose 59,000 bpd (barrels per day) to 9.4 MMbpd (million barrels per day) between June 30, 2017, and July 7, 2017. It’s the highest level since July 31, 2017. Production rose 0.60% week-over-week and 10.7% year-over-year.
The rise was due to higher production in Alaska and the lower 48 states between June 30, 2017, and July 7, 2017. Alaska’s crude oil production rose 34,000 bpd to 457,000 bpd during the same period. Production from the lower 48 states rose 25,000 bpd to 8.9 MMbpd between June 30, 2017, and July 7, 2017.
The rise in US crude oil production would have a negative impact on crude oil (SCO) (BNO) (UCO) prices. Prices have fallen ~16.0% in the last three months, partially due to the rise in US crude oil production.
US crude oil production estimates
The EIA (U.S. Energy Information Administration) released its monthly Short-Term Energy Outlook report on Tuesday, July 11, 2017. The EIA estimates that US crude oil production will average 9.9 MMbpd in 2018. It’s 1.0% lower than the previous estimates. The downward revision in US crude oil production’s outlook supported oil prices on July 11, 2017.
The EIA also estimates that US crude oil production could average 9.3 MMbpd in 2017. It’s the same as the previous estimates. For more on monthly production, read How Monthly US Crude Oil Production Has Supported Crude Prices.
US production is expected to hit a record in 2018 due to President Trump’s energy plans and a mammoth rise in US crude oil rigs year-to-date. The rise in production for the United States, Brazil, Canada, Russia, Kazakhstan, and the United Kingdom in 2018 would also weigh on crude oil (IEZ) (XES) (RYE) prices.
In the next part of this series, we’ll look at US gasoline inventories and production last week.