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U.S. crude oil production remains level last week

2019-02-15 08:48

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U.S. crude oil production stayed level during the week ending Feb. 8, the U.S. Energy Information Administration (EIA) said on Wednesday.

According to EIA, the weekly U.S. production of crude oil averaged 11.9 million barrels per day (b/d), the same as the previous week and up by about 1.6 million b/d year-on-year.

U.S. crude oil production averaged 12.0 million b/d in January, up 90,000 b/d from December 2018, according to EIA's estimate.

In its latest Short-Term Energy Outlook issued Tuesday, EIA forecast U.S. crude oil production to average 12.4 million b/d in 2019 and 13.2 million b/d in 2020, with most of the growth coming from the Permian region of state of Texas and New Mexico.

Globally, the imposition of sanctions by the United States against Venezuela's state oil company Petroleos de Venezuela (PDVSA) causes concerns about oil supply shortage.

Addressing this issue, International Energy Agency (IEA) said in its latest oil market report that so far, there are no signs that other producers are intending to push more barrels into the market to offset shortfalls. Oil prices have not increased alarmingly because the market is still working off the surpluses built up in the second half of 2018.

In quantity terms, the United States alone will grow its crude oil production by more than Venezuela's current output in 2019, according to IEA.

Oil prices gained on Wednesday as reports showed further reduction in global output, bolstering the market. The West Texas Intermediate for March delivery increased 0.80 U.S. dollar to settle at 53.90 dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery rose 1.19 dollars to close at 63.61 dollars a barrel on the London ICE Futures Exchange.
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