February 7, 2018
Domestic crude supplies were up 1.9 million barrels for the week ended February 2 — the most since early September, according to Wednesday’s weekly report from the US Energy Information Administration, after the American Petroleum Institute reported Tuesday a decline of 1.1 million barrels.
Analysts surveyed by S&P Global Platts had forecast a climb of 2.8 million barrels.
The EIA report said U.S. output climbed 332,000 barrels to total 10.251 million barrels a day, the biggest jump since the EIA started keeping records in 1983.
Experts including Bloomberg‘s Julian Lee and WTRG Economics‘ James Williams agree that the increase in output reported for last week was “influenced by the much higher-than-expected November production.”
It’s a correction, Lee said, based on the much-bigger-than-anticipated production in November finally catching up to the market.
Williams added, “both the 10 million [barrels a day] for November and the continuing rise on a pace that will result in U.S. output over 11 million…by September or October of this year should be make OPEC nervous and second guess any plans of eliminating their production cuts too early.”
That, he said, should awaken “the remaining bears out of hibernation.”