Oil dips as U.S. crude output hits record 12 mln barrels per day
* U.S. crude stocks rise to 454.5 million barrels - EIA
* U.S. oil production hits 12 mln bpd: https://tmsnrt.rs/2VegNR3
(Adds Brent prices, graphics)
By Henning Gloystein
SINGAPORE, Feb 22 (Reuters) - Oil prices fell on Friday
after the United States reported its crude output hit a record
12 million barrels per day (bpd), undermining efforts by Middle
East dominated producer club OPEC to withhold supply and tighten
International Brent crude futures were at $66.94 per
barrel at 0151 GMT, down 13 cents, or 0.2 percent, from their
U.S. West Texas Intermediate (WTI) crude oil futures
were at $56.86 per barrel, down 10 cents, or 0.2 percent, from
their last settlement.
U.S. crude oil production <C-OUT-T-EIA> reached 12 million
barrels per day (bpd) for the first time last week, the Energy
Information Administration (EIA) said on Thursday in a weekly
That means U.S. crude output has soared by almost 2.5
million bpd since the start of 2018, and by a whopping 5 million
bpd since 2013. America is the only country to reach 12 million
bpd of production.
As output surges, U.S. oil stocks are also rising.
U.S. commercial crude oil inventories <C-STK-T-EIA> rose by
3.7 million barrels in the week ending Feb. 15, to 454.5 million
barrels, the EIA said.
Analysts say U.S. oil firms will export more oil to sell off
"The continued surge in U.S. production stands as a bearish
dynamic for market prices, especially as increasing volumes get
sold abroad in a direct challenge to Saudi Arabia and Russia,"
said John Kilduff, partner at Again Capital in New York.
For now, at least, the price dips have halted a rally that
pushed crude to 2019 highs this week amid supply cuts led by the
Organization of the Petroleum Exporting Countries (OPEC).
OPEC and some non-affiliated producers such as Russia agreed
late last year to cut output by 1.2 million bpd to prevent a
large supply overhang from growing.
Another price driver has been U.S. sanctions against oil
exporters Iran and Venezuela.
(Reporting by Henning Gloystein; Editing by Joseph Radford)
First Published: 2019-02-22 02:21:42
Updated 2019-02-22 04:01:11
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