While oil investors are grappling with geopolitical risks, the potential impact of tensions in the Middle East is uncertain, Goldman Sachs Group Inc. said Tuesday. While the conflict between Iraq’s central government and the semi-autonomous Kurds cut crude flows through a Turkish pipeline, the disruption may be short lived. Meanwhile, OPEC sent its strongest signal yet that its output cuts will be extended until the end of 2018. The flow rate through the pipeline from Kurdish region to the Turkish port of Ceyhan was about 200,000 barrels a day, according to a port agent report. That was unchanged from Thursday, but down from about 600,000 barrels a day before the conflict began. U.S. gasoline inventories expanded by 908,000 barrels last week, while distillate supplies climbed by 528,000 barrels to 134.5 million barrels, according to the Energy Information Administration. Crude stockpiles declined for a fourth week, down by 5.731 million barrels to 456.5 million barrels, the data showed. Click Read More below for additional information.
US crude oil production peaked at 9,600,000 bpd in June 2015. On the other hand, it hit a low of 8,428,000 bpd for the week ending July 1, 2016—the lowest level since June 2014. Since then, US crude oil production has risen ~8.3%.
Lower crude oil prices, higher break-even costs, and higher production costs for US shale oil producers compared to other oil producers led to the fall in US crude oil production in 2016.
However, the recovery in crude oil prices since early 2016 led to the rise in US crude oil drilling activity and US crude oil production in late 2016 and early 2017.
The EIA estimates that US crude oil production will average 9,210,000 bpd and 9,730,000 bpd in 2017 and 2018, respectively. The EIA estimates that US crude oil production will rise to a 48-year high in 2018. US crude oil production averaged 8,880,000 bpd in 2016.
more at: http://marketrealist.com/2017/03/us-crude-oil-production-near-1-year-high/