US tops Russia, Saudi Arabia to become world’s biggest crude oil producer
The United States of America has pushed Russia and Saudi Arabia to become the world’s biggest crude oil producer.
In the week ending November, the U.S. crude production hit a whopping 11.6 million bpd, according to Energy Information Administration (EIA) data released on Wednesday.
That’s a threefold increase from the U.S. low reached a decade ago, and a 22.2 percent rise just this year. It makes the United States the world’s biggest producer of crude.
Russia pumps an average of 10.8million bpd and Saudi Arabia, about 10.5million bpd.
More U.S. oil will likely come. The EIA expects output to break through 12 million bpd by mid-2019, largely thanks to a surge in shale oil production.
The record US production has been a moderating factor of oil prices, although oil got a bump on Thursday after record Chinese crude imports eased concerns that a slowdown in the world’s No.2 economy could stoke an emerging fuel glut.
However, oil markets were held back somewhat after the United States became the world’s top crude producer as its output hit record levels.
Front-month Brent crude oil futures were at $72.27 a barrel at 0800 GMT, up 21 cents, or 0.3 percent, from their last close.
“Crude oil imports rose … as uncertainty around tariffs on U.S. imports and sanctions on Iran eased,” said ANZ bank following the data release.
“We also saw demand from China’s independent refineries rise,” it added.
NAN
