US crude output hits record high in August – EIA

Crude oil production in the US hit a new record high in August, averaging 13.4 million b/d, according to the Energy Information Administration (EIA).

PHOTO: An oil pump against the background of the US flag. Getty Images

This surpasses the previous high of 13.3 million b/d recorded in December last year, the EIA said in its Petroleum Supply Monthly report.

August's milestone figure has further cemented the country's position as a leading global oil producer, a position it has held since 2018.

US crude oil production in the first eight months of this year dipped below 13 million b/d only once in January, the EIA said. For the full year, the energy agency expects US crude output to average 13.2 million b/d.

“That volume would be more than the 2023 annual average of 12.9 million b/d, which is the current annual production record,” the EIA said. “In 2025, we forecast U.S. crude oil production will average 13.5 million b/d,” it added.

Besides, with the re-election of former US President Donald Trump, oil production is expected to boom in the upcoming year, according to several market analysts. This development can be attributed to new tariffs imposed on all imported goods from China, Canada, and Mexico.

“For energy markets, new tariffs could make crude oil and natural gas expensive in the US as Canada is one of the major suppliers of energy products,” two analysts from ING Bank remarked. “On the other hand, tight supplies from external markets could lead to bigger investments into shale drilling that may help push domestic production higher,” they added.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online