The U.S. Energy Information Administration (EIA) released its weekly petroleum status report Wednesday morning, showing that U.S. commercial crude inventories increased by 1.9 million barrels last week, maintaining a total U.S. commercial crude inventory of 420.3 million barrels.
We will remind, the global energy Agency warned that the United States is prepared "explosive" growth of oil production.
Saudi Arabia's oil production increased by 60,000 bpd to 10.10 million bpd, though still less than the amount agreed in the OPEC agreement.
"The cargo of American condensate - a type of very light crude oil - was preferred to regional grades because its superior quality made more suitable for the U.A.E's processing plants, a person with knowledge of the matter said, asking not to be identified discussing a commercially sensitive matter", Bloomberg reported.
The UAE produced around 2.87 million bpd of crude oil in January, in line with its production quota under the OPEC supply cut deal.
American crude production has now eclipsed Saudi Arabia's output, and Citigroup Inc. expects it to breach 11 million barrels a day by the end of summer, several months earlier than the USA government's own forecast.
Oil prices fell Tuesday, with the USA benchmark marking its lowest settlement in nearly three weeks.
West Texas Intermediate for March delivery fell 41 cents to $61.38/bbl at 10:13 a.m. on the New York Mercantile Exchange, after earlier rising to as high as $62.09. In January, the department expected production of 10.3 million barrels. Prices are heading toward their longest stretch of declines since April.
The Energy Department recently said it expected that US oil production to reached a record 10.2 million barrels a day in January.
Oil producers across OPEC and Russian Federation are up against their United States counterparts to gain market share. "Generally, a stronger dollar suppresses demand for dollar denominated commodities like crude oil, since consumers outside the USA who have to acquire dollars as foreign exchange slow down buying", said an oil ministry official.
USA government data last week showed output climbed above 10 million barrels per day in November for the first time since 1970. Last month, it forecast a 970,000 bpd year-over-year increase to 10.27 million bpd.
Russian Federation surpassed Saudi Arabia as China's largest source of foreign crude oil in 2016, exporting 1.2 million b/d to China in 2017 compared with Saudi Arabia's 1.0 million b/d.