By beating Russia and Saudi Arabia, the United States of America this year has become the topmost crude oil producer. This estimation was done by the EIA (Energy Information Administration).
Russia has increased its productivity by more than 200,000 bpd (barrels per day). This comes after the June 22 agreement between the OPEC (Organization of the Petroleum Exporting Countries) and Russia for increasing the production and reducing the prices. While the average productivity for the United States is higher since drillers have taken the benefits of higher production and lower costs. A few days back, the EIA predicted that the U.S. crude oil production was 10.9 Million bpd for August, which was increased by 120,000 bpd from June. However, the United State’s numbers were less than Russia’s 11.21 Million bpd for the same month. As per EIA prediction, on an average, the United State’s crude oil production rate for 2018 until now has been increased.
Speaking of oil, recently oil prices were increased by 1.6% in the U.S., as the U.S. stocks fell by 5.3 Million barrels. The oil prices were increased to its highest level until this year. The U.S. crude stockpiles were dropped due to the vision of loss of Iranian supply added to concern over the weak stability between production and consumption. Brent crude futures were increased by 59 Cents at $79.65 a barrel and temporarily broke above $80. There was increase in the U.S. crude futures with $1.12 i.e. by 1.6%, which settled at $70.37 a barrel. Gordon Gray—HSBC’s global head of oil and gas equity research—says that oil market assets are progressively more supportive for crude prices, at least presently. Outside the U.S., dealers are focusing on the effect of the U.S. sanctions against Iran since the sanction targets oil exports from November.