U.S. crude oil production expands significantly in February

The Petroleum Supply Monthly Report of EIA indicated that the U.S. crude oil production expanded in February by 190 kb/d month-on-month to 9.03 mb/d. This increase was driven by a sharp rise in Lower-48 onshore output. Monthly PSM data were roughly consistent with the weekly EIA production data during February. The latter shows that production expanded an additional 210 kb/d through late April.

Demand dropped considerably in the month by 490 kb/d year-on-year, marking the biggest fall since 2012. Consumption was subdued across much of the barrel; however, gasoline and unfinished oils were significantly weak. Crude oil exports reached a record 1.1 mb/d in February, supported by a surge in shipments to China, noted Barclays in a research report.