The United States has once again secured its position as the leading global oil producer for the sixth consecutive year, as confirmed by the Energy Information Administration (EIA). With an unprecedented average daily production of 12.9 million barrels, U.S. crude oil output continues to set new records, reaching a peak of over 13.3 million barrels per day in December.
According to the EIA’s International Energy Statistics, the U.S. has outpaced all other nations in crude oil production for six consecutive years, underscoring its dominance in the global energy landscape. The agency further stated that it is unlikely for this remarkable record to be surpassed by any other country in the foreseeable future.
In contrast, Saudi Arabia made a significant policy shift in January by instructing Aramco to curtail its oil expansion plans and cap production at 12 million barrels per day, a million barrels below the previously announced target set in 2020. This decision comes amidst ongoing geopolitical tensions in the Middle East and Russia, coupled with concerns over weakening demand in China, leading to a dip in the global benchmark Brent below $82 a barrel.
Furthermore, OPEC+ members, spearheaded by Saudi Arabia and Russia, recently agreed to prolong voluntary oil output cuts of 2.2 million barrels per day into the second quarter. This collective effort aims to provide additional support to the market in light of apprehensions surrounding global economic growth and escalating production levels outside the alliance.