[ad_1]
The increase in crude oil production in the United States reached a record 11.6 million bpd during the week ending Nov. 2, according to data from the Energy Information Administration (EIA) released Wednesday.
This is three times higher than the lowest level reached in the United States ten years ago and an increase of 22.2% this year alone. This makes the United States the world's largest producer of crude oil.
More American oil will probably come. EIA predicts that production will reach 12 million barrels per day by mid-2019, largely due to an increase in shale oil production.
At the same time, US crude inventories rose 5.8 million barrels during the week ending Nov. 2, to 431.79 million barrels, the agency said.
Crude inventories returned above their five-year average levels in October.
Production has not only increased in the United States, but also in many other countries, including Russia, Saudi Arabia, Iraq and Brazil, raising concerns of producers as to the reappearance of 39, an oversupply that depressed oil prices between 2014 and 2017.
"Producers worry about the potential for overproduction … after EIA announced an increase of 5.8 million barrels in crude stocks," said Stephen Innes, trade manager for the region. Asia-Pacific at Oanda in Singapore.
Source link
