You can talk all you want about rising U.S. oil production, but the fact is that U.S. crude oil supply is below average. The Energy Information Agency, in its weekly report, said that U.S. commercial crude oil inventories fell by 2.6 million barrels to 428.3 million barrels, which the EIA says are the lower half of the average range for this time of year. This is happening even as U.S. oil production reportedly increased to 10.047 million barrels of oil a day.
Despite the recent correction in crude oil, the Saudis say they are all in when it comes to cutting production. Despite the recent stock-market inspired shake out and the surge in shale oil output, the truth is that the global oil market is going through its most significant tightening cycle in during a decade. The Saudis are not going to let a little stock market correction and shale surge stop them from their goal of tightening the global oil market place.
Crude oil prices are getting hit on conflicting data that on one hand, the Energy Information Administration is showing that global oil inventories are tightening sooner than it previously expected, but on the other hand, blindsided by a weekly report by the American Petroleum Institute that showed U.S. crude supply increased by a stunning 14.4 million barrels.