Putting forth its estimates, the EIA expects production in the USA to average around 8.73 million barrels per day in 2016, thereby dropping to 8.31 million barrels per day by 2017.
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Markets had bet on a decrease of 1.300 million barrels.
Non-OPEC oil supply growth in 2017 was revised down by 40 tb/d this month and is expected to contract by 0.15 mb/d over the current year to average 55.97 mb/d.
President Nicolas Maduro last week said his government was working to convene a meeting between Opec and non-Opec countries to stabilise prices.
“Another round of proposed production freeze talks by OPEC failed to excite investors”, ANZ Bank said on Wednesday. “At this time of year, we should be drawing down in crude inventories and we are still building”.
“This is a short-covering rally with record short interest in crude oil”, Mr Kilduff said, adding that rumour of possible collaboration between Russian Federation and Opec was also influencing market decisions.
Analysts were expecting a drop of 1.75 million barrels.
The output figures the two people said the kingdom submitted to Organisation of Petroleum Exporting Countries (Opec) for last month beat the previous all-time production high of 10.56 million barrels a day in June 2015, according to the group’s data.
WTI crude futures for September delivery fell 16 cents to $42.61 a barrel, a 0.4 percent loss, following the data release.
The pace of growth for demand for oil, along with declining US production and how it will be offset primarily by OPEC output, will decide the price level of oil going forward.
US West Texas Intermediate (WTI) crude futures were down 88 cents, or 2 per cent, at $41.89 per barrel by 1627 GMT (9:57 p.m.in India).
On Tuesday, Iran said its exports have regained 2.5 million bpd, last seen before sanctions were imposed on Tehran over its nuclear program.
The Energy Information Administration reported a 1.1-million-barrel rise in commercial crude oil inventories for the week to August 5.
“The crude supply overhang is going to keep the price from rallying too strongly”, David Lennox, a resources analyst at Fat Prophets in Sydney, told Bloomberg News.
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The group will hold informal talks on the sidelines of a conference in Algiers next month, though OPEC has shown no signs of ditching the Saudi-led strategy of letting prices fall to maximize market share.
