Crude oil production in the United States of America reaches world record high

Crude oil production in the United States of America reaches world record high

Crude oil production in the United States of America reaches world record high

The record U.S. production has been a moderating factor of oil prices, although oil got a bump on Thursday after record Chinese crude imports eased concerns that a slowdown in the world's No.2 economy could stoke an emerging fuel glut.

U.S. West Texas Intermediate (WTI) crude CLc1 was at $61.84, down 37 cents, or 0.6 percent.

International Brent crude oil futures were down $1.27, or 1.7%, at $71.90/Bbl by 2:24 p.m. ET.

Oil prices dipped on Wednesday as high output and US sanction waivers allowing Iran's biggest buyers to keep taking its crude reinforced the outlook for a well-supplied market.

While Iranian oil exports are expected to fall after US sanctions took effect on Monday, reports from OPEC and other forecasters have indicated the global oil market could have a surplus in 2019 as demand slows.

China and India were the largest markets for Iranian crude before the onset of sanctions and will remain such for the upcoming six months.

The decline in oil prices over the past weeks follows a rally between August and October when crude rose ahead of the re-introduction of sanctions against Iran's oil exports on November 5. The previous daily record of 9.6 million bpd was touched in April 2018.

In the US, crude production increased to 11.6 million barrels per day last week, the highest level on record, according to Energy Information Administration data.

China National Petroleum Corp (CNPC) said on Friday it was continuing to take oil from Iranian oilfields in which it has ownership stakes.

Crude futures are poised for their fifth straight week of losses as growing output from key producers and a deteriorating outlook for oil demand deepen a sell-off spurred by October's broader market sell-off.

Oil prices have tumbled as much as 20 percent from four-year highs on October 3.

For the first time, just three producers - the US, Russia and Saudi Arabia - now account for a third of global oil production and both the latter two have, like the US, been increasing production.

Still, analysts think the scenario will change now that the mid terms are over: Joe McMonigle, analyst at Hedgeye, stated in a note, "OPEC was feeling the Trump pressure but producers took action with the thinking that they just needed to get past the US election". Russia's TASS news agency reports that Russian Federation and Saudi Arabia are in bilateral talks to orchestrate another round of output cuts when producers meet next month. "Opec and Russian Federation may use cuts to support US$70 per barrel", said Ole Hansen, head of commodity strategy at Saxo Bank.

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