Crude oil future contracts fell this morning during Asian trade hours. Traders reacted, negatively, to ring output in the United States. However strong global demand as well as a reduction in U.S. fuel stockpiles supported price levels, somewhat.
As of 1 am GMT, the international benchmark, Brent crude was lower. This futures contract was down 28 cents from its last close. It was at $76.46 per barrel.
U.S. West Texas Intermediate (WTI) crude futures were down six cents from yesterday to trade at $66.58 a barrel.
Oil was down as there has been another spike in U.S. oil production. According to the Energy Information Administration (EIA), on Wednesday, U.S. production hit another weekly record of 10.9 million barrels per day.
U.S. Crude Oil Production continues to Grow
U.S. shale oil output is up nearly 30 percent over the last two years. U.S. output is now near the ranking global producer Russia. Russia pumps 11.1 million barrels per day so far in June.
Rising output is side by side with strong global demand. There is also higher than expected demand in the United States. This supported price levels and an even deeper fall.
In other economic data, according to the EIA, U.S. consumption of gasoline was up. It hit an all-time high of 9.88 million barrels per day last week.
Thanks to strong demand, U.S. inventories also fell. They lost 4.1 million barrels for the week ending June 8. Inventory is now at 432.4 million barrels.
U.S. output is also now above OPEC’s leader Saudi Arabia. They pump out slightly more than 10 million barrels per day.