The agency now expects US oil output to fall by 700,000 barrels per day (bpd) this year to 8.73 million bpd, compared with the 820,000-bpd drop it previously forecast.
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Crude inventories rose 1.1 million barrels in the last week, compared with analysts’ expectations for an decrease of 1.0 million barrels.
U.S. crude inventories rose 1.1 million barrels in the week ended August 5, the U.S. Energy Information Administration (EIA) reported, in a third consecutive weekly build that surprised the market.
The Energy Information Administration expects the monthly average price for regular‐grade gasoline to drop to $2.05 next month and slide under two dollars during the fourth quarter.
The country’s oil production stood at 0.86 million barrels per day in 2015, according to the EIA.
Crude oil futures edged lower Wednesday morning, trimming recent gains ahead of United States oil inventories data.
Nearly all of the decline in USA oil production has been onshore in the Lower 48, while offshore production in the Gulf of Mexico increased. When producers last held such talks in April, OPEC members failed to agree on any measures.br “Renewed attempts at verbal intervention by OPEC will help bolster oil market sentiment, although the group will struggle to rebuild its role as a backstop to Brent”, oil analysts at BMI Research said in a note to clients.
Shortages of basic foods and medicines have hit Venezuela hard, with looting and complaints of hunger ever more common. It fell as much 69 cents earlier in the session on concerns about Saudi crude production in July.
OPEC produced just over 33.1 million barrels of oil per day in July, up 46,400 barrels compared to June, the oil cartel said in a new report released Wednesday.
“The talk about a production freeze is all talk and no action”, said Andy Lipow, president of Lipow Oil Associates in Houston.
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“The current values of futures and options contracts highlight the heightened volatility and high uncertainty in the oil price outlook”, EIA said. Diesel futures fell 1.23 cents, or 0.9%, to $1.3184 a gallon.
