U.S. crude oil production reached a record high of 13.488 million barrels per day (bpd) in March, according to new data from the Energy Information Administration (EIA). This slightly surpasses the previous monthly record of 13.450 million bpd set in October 2024 and marks an increase from 13.153 million bpd in February. The growth was driven mainly by steady output from the Permian Basin and Gulf Coast, even as drilling activity slowed in other regions.
However, demand painted a different picture. Total petroleum product supplied—a key measure of U.S. oil demand—fell to 19.95 million bpd in March. This is the lowest level in a year and down from 20.225 million bpd in February. The drop in consumption raises concerns for refiners and exporters as the summer driving season approaches, especially with rising inventories.
Crude oil imports for March totaled 178.4 million barrels, slightly higher than February due to the longer month, but lower on a daily average. Imports of finished products, including gasoline blending components and jet fuel, reached 17.8 million barrels.
Despite record production, U.S. drillers are cutting back. The rig count dropped for the fifth week in a row in May, falling to 563—the lowest since late 2021. Oil-directed rigs declined to 461, with losses in both the Permian and New Mexico. Producers remain focused on capital discipline, prioritizing debt reduction and returns to shareholders.
The situation highlights a clear contrast: U.S. oil output is at an all-time high, yet drilling activity and spending are down, and demand is softening. This imbalance between supply and demand may shape the oil market through the summer months.
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