U.S. crude oil production surged to an all-time high of 13.24 million barrels per day (bpd) in April, according to newly released data from the Energy Information Administration. The increase of 0.4% over March volumes reinforces America’s standing as the world’s top oil producer and follows months of steady gains driven by improved drilling efficiencies and stronger prices.
Texas led the charge with an output of 5.7 million bpd, up 1.6% from March, while New Mexico, the second-largest producing state, posted a 0.7% increase to 1.95 million bpd. Gulf of Mexico volumes dipped slightly, but the national gain offset offshore slippage.
The upstream momentum hits just as U.S. refiners face tightening margins and seasonal maintenance. According to the EIA’s latest refining update, nationwide gross refinery inputs fell to 16.3 million bpd for the week ending June 21, a drop of 617,000 bpd from the prior week. The decrease was attributed to unplanned outages and deferred restarts across the Gulf Coast and Midwest.
The slowdown in refining has crimped gasoline and distillate production. Gasoline yields dipped to 9.5 million bpd, down from 10 million bpd in early June, while distillate fuel oil production fell below 4.7 million bpd. Inventories have not tightened significantly, but traders are watching margins closely as summer demand kicks in and hurricane risks mount in the Atlantic.
Despite downstream constraints, the record-setting crude output points to strong upstream resilience. If refining bottlenecks persist, however, domestic stockpiles could climb rapidly, capping further price gains even as Brent hovers near $86 per barrel.
The surge in crude output comes amid a broader recalibration of global supply dynamics. With OPEC+ curbing exports through Q3 and geopolitical risks, U.S. barrels have filled a crucial gap in Atlantic Basin markets.
Recent EIA data show that U.S. crude exports averaged 4.6 million bpd in April, with strong flows to Europe and Asia despite narrowing WTI-Brent spreads. If domestic refining continues to feel constraints, markets could see more unprocessed volumes diverted to exports, reinforcing the U.S. role as a swing supplier.
By Charles Kennedy for Oilprice.com
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