USA oil production hits highest level in almost 50 years

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USA crude oil production, boosted by record high output in Texas, reached 10.038 million b/d in November, the highest level since the record 10.044 million b/d achieved in November 1970, according to the Energy Information Administration (EIA). Production in the Federal Gulf of Mexico reached 1.67 million b/d, up 14% from the October 2017 level as the region recovered from Hurricane Nate.

Taylor sees prices rising on the back of "robust" growth in global demand, but tipped the market would remain "boringly rangebound" in the short and medium term.

Crude oil production in Texas reached a record high 3.89 million b/d in November, EIA said. Goldman also raised its six- and 12-month forecasts to $82.50 and $75, respectively.

Rising American production has, luckily, not displaced Canadian oil exports to US - for now.

New sanctions from the US target tankers that were revealed to be delivering oil products from Russian Federation to North Korea.

Crude's Thursday rebound from Wednesday's mild losses - which fueled experts' contention that a price correction is forthcoming - has been accompanied by a major bank declaring that far from heading for a downswing, oil will soon surpass $80 per barrel in a market that is already balanced. America's decades-old crude export ban was lifted in late 2015 by Congress and the country is now shipping out about 1.7 million barrels a day to foreign markets, more than triple the 500,000 barrels exported at the end of 2016. That's the highest figure since November 1970, when the US produced 10.044 million barrels per day.

Oil jumped after Goldman Sachs Group Inc. boosted a price forecast by a third and said global crude markets have probably rebalanced.

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Brent crude, the global benchmark, was down 0.10% at $69.58 a barrel on London's Intercontinental Exchange.

Reference crude Brent of the North Sea sold at 69.35 dollars per barrel, while the USA light crude West Texas Intermediate was quoted 65.65 dollars.

The bank also said rising USA shale supply actually will be needed to keep the market steady in the near-term, since any ramp-up in OPEC output will lag the rebalancing.

"There's no doubt shale players will respond to higher prices", says Jan Edelmann, commodity analyst at HSH Nordbank AG. "The torrid pace of production growth of nearly 850,000 bpd since late summer underscores the anti-fragile nature of production in a rising price environment despite a stagnant rig count", RBC analysts said.

The record-level production comes as President Trump has promised to usher in an era of "energy dominance" that will include ramping up oil-and-gas drilling across the country.

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