US oil production just hit record high

The US anticipates a rise in oil prices in the latter half of the year due to falling global inventories and OPEC+ production cuts.

US oil production hit a record high of 13.4 million barrels per day last week, according to the Energy Information Administration (EIA), Caliber.Az reports citing the foreign media.

This marks an increase of 800,000 barrels from the 12.6 million barrels per day recorded a year ago. This new production milestone follows the EIA's March announcement that the US leads the world in crude oil production.

As of August 7, US crude prices rose 2.8 per cent to $75.28 per barrel, reflecting a recent uptick in the market. However, both US and international oil prices have experienced declines in recent weeks, with traders speculating about a potential slowdown in the US economy.

The EIA's latest short-term energy outlook forecasts that US natural gas inventories will reach 3,954 billion cubic feet by the end of October, the highest level of natural gas storage since 2016. Despite the rising oil production, global consumption is expected to continue increasing, though growth may be slightly tempered by slower economic expansion in China, which could impact its gas usage.

The administration anticipates an increase in oil prices during the latter half of the year, driven by declining global oil inventories and OPEC+ production cuts. The forecasted average price for Brent crude oil is projected to be $86 per barrel in 2025.

Goldman Sachs analysts also predict a recovery in oil prices, citing strong Western demand and a probable rebound in market positioning.

Currently, oil prices are down approximately 7.5 per cent from last year, as traders reassess potential disruptions from geopolitical conflicts in the Middle East and concerns about a slowing US economy.