US Oil Production Hits Record 13.8 Million Barrels Per Day In August: EIA
Synopsis
August oil production exceeded EIA’s forecast of 13.5 million barrels a day
- US diesel demand was 4.9% lower in August
- ExxonMobil and Chevron said they are ramping up production despite a possible reduction in prices
U.S. oil production hit a record 13.8 million barrels per day in August, according to data from the Energy Information Administration (EIA). The Department of Energy’s statistical wing had pegged production to average 13.5 million barrels per day.
Meanwhile, U.S. diesel demand, a key measure of the country’s economic health, was 4.9% lower in August than early weekly estimates. Jet fuel demand was up 2.7% year on year.
Russian Oil Sanction Expected to Boost Supplies
U.S. oil production could accelerate further as shale drillers gain momentum following this month’s price rebound. The recovery was driven by new US sanctions on Russian oil majors Rosneft and Lukoil.
The Trump administration imposed high tariffs on Russian crude importers like India, blaming New Delhi for helping fund the war between Russia and Ukraine. This led Indian refiners to slash imports of Russian Urals. Conversely, India has reportedly agreed to increase its import of U.S. energy.
During his recent visit to Asia, President Donald Trump stated that he had reached agreements with Chinese President Xi Jinping and South Korean President Lee Jae Myung to increase the purchase of U.S. energy by both nations.
ExxonMobil, Chevron Production Ramp-Up
On Friday, both ExxonMobil and Chevron said they are ramping up production, driven by robust output from the Permian Basin and Guyana, despite expectations of lower oil prices ahead. The energy giants reported higher oil production in their third-quarter results.
The EIA projects Brent crude prices to average $62 per barrel in the fourth quarter of 2025, before slipping further to $52 in 2026.
At the time of writing, Brent crude was up 0.08% at $65.05 a barrel.
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