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US oil production at two-year high

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According to monthly data from the US Energy Information Administration (EIA), total crude oil production in the US rose in June to 11.8 million barrels per day (bpd), which is the highest level since April 2020.

In 2019, US crude oil production peaked at 12.3 million bpd, but the onset of the COVID-19 pandemic and the associated lockdowns and travel restrictions reduced the global demand for oil, prompting operators to slash production. Since then, US producers like ExxonMobil, the maker of the advanced Mobil DTE 10 Excel hydraulic oil, have been gradually ramping up production again to meet the recent resurgence in the demand for oil.

The IEA also notes strong demand in the US for crude oil and other petroleum products, with it being the highest since August 2019 at 20.8 million bpd. Motor gasoline demand, meanwhile, stood at 9.1 million bpd.

North Dakota showed strong production growth, rising to its highest since March at 1.1 million bpd following a 3.4% increase. In Texas and New Mexico, where the prolific Permian Basin dominates the oil and gas sector, production in the former fell slightly by 1%, denying any break through the symbolic 5 million bpd threshold, while Mexico’s production rose 2% to an all-time high of 1.5 million barrels.

The EIA currently predicts that US oil production will average 11.9 million bpd this year, with it rising to set a new record of 12.7 million bpd next year. It also expects Brent prices to average $95 per barrel over 2023.

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