In its latest weekly report, the Energy Information Administration (EIA) revealed that total domestic crude production hit 12 million b/d last week. This rate is the highest weekly estimate ever recorded by EIA, since the federal agency began tracking the data in 1983. Recent growth in domestic crude production helped to push up total domestic crude inventories by 3.7 million bbl to 454.5 million bbl. The larger than expected build in total inventories sent crude prices lower immediately after EIA’s data was released. If falling crude prices are sustained, they could help send pump prices lower.
Market observers believe that amid constrained global crude supply this year, continued growth in U.S. crude production will help to meet global demand for crude through U.S. exports. In fact, last week’s crude export rate, according to EIA, increased significantly to 3.6 million b/d from the previous week’s 2.4 million b/d. Last week’s crude export rate is the highest ever recorded by EIA, since it began tracking the rate in 1991.