As US oil output increases, a threat to oil prices sustainability above $50/bbl grows.
Last week, US crude oil output increased by 79,000 bbl/day to reach 9,502,000 bbl/d. US oil output is now up by approximately 1 million barrel/day since the same time a year ago. At this level, US oil production is only a 100,000 away from crossing the highest level it reached in 2015.
The surge in US oil production is now putting much pressure on oil prices this week, and despite a sharp fall in US crude stockpiles by 8.9 million bbls, and a loss of gains in the greenback, oil prices are trading on the red this week falling by almost 2 percent from where it started on Monday.
US crude oil output will continue to rise, and could see it crossing the same high level it did back in 2015 in a matter of one or two months.
