US oil production rose to record high in October, EIA data shows

US oil production rose 260,000 barrels per day (bpd) month-over-month to a record 13.46 million bpd in October as demand surged to the highest levels since the pandemic, data from the US Energy Information Administration showed on Tuesday.

US oil output has grown rapidly last year as drilling operations became more efficient in the country, even as concerns of oversupply have weighed heavily on prices for the commodity amid weaker-than-expected demand growth, especially in China, the top oil importing nation.

Year-over-year, US oil production rose 2.3 per cent in October, while West Texas Intermediate (WTI) crude futures prices averaged 16 per cent lower during the month, according to Reuters calculations. WTI and global benchmark Brent crude are on track for their second consecutive annual losses in 2024.

Still, the pace of growth of US oil output is moderating, analysts said. Annual oil production growth in the US is tracking around 300,000 to 400,000 bpd in 2024, versus nearly a million bpd in 2023, said Alex Hodes, energy analyst at brokerage StoneX.

“There have been a few infrastructure constraints that have kept production somewhat muted but I would expect that we will see a lot of the same in 2025,” Hodes said.

Strong US oil demand in October was the biggest surprise in the EIA’s Petroleum Supply Monthly report, UBS analyst Giovanni Staunovo said.

Natural gas production from US Lower-48 states averaged 115.87 billion cubic feet per day (bcfd), up 1.2 bcfd from September, as Texas output rose to a record 36.49 bcfd.