Miracle on Oil: US Producing Record 10.8 Million Barrels a Day Read Newsmax: Miracle on Oil: US Producing Record 10.8 Million Barrels a Day | Newsmax.com Important: Find Your Real Retirement Date in Minutes! More Info Here

There are more pushes and pulls affecting the price of crude. On the bearish side, the shale miracle continues to boost production in the US, OPEC quotas are up for debate at next week’s meeting, and Saudi Arabia and Russia have already started pumping more oil. And on the horizon, electric vehicles could weigh on oil demand if they’re broadly adopted. On the bullish side, renewed US sanctions against Iran could lower that country’s production, the dissolving society in Venezuela has crippled its oil industry, and the strong global economy has helped boost demand.

The US Energy Information Administration’s forecast calls for an oil market that’s in amazing balance. This year, it expects worldwide crude oil and liquid fuels production of 100.22 million barrels per day (mbd) and worldwide consumption of 100.29 mbd. The oil market has already placed its bet: The price of a barrel of Brent crude oil has jumped to $75.88, up 57% y/y (Fig. 1). But now it might move sideways for a while. Let’s take a closer look at the oil market ledger:

(1) Production increasers. The US oil miracle continues to keep the markets well supplied. US crude oil production jumped to 10.8 mbd at the start of this month, an all-time record (Fig. 2). Current production has increased 1.4 mbd from last year, helped along by the growing number of rigs deployed (Fig. 3 and Fig. 4). Despite the increased production, US crude stocks fell last week by 4.1 million barrels, more than the expected drop of 2.7 million barrels.

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