U.S. production of crude oil rose to a record even as prices slumped and the number of rigs targeting oil decreased.
Output climbed to 9.19 million barrels a day last week, the highest in the Energy Information Administration’s weekly estimates going back to 1983. Strong production also helped push crude inventories to a seasonal record.
Last week, U.S. oil rigs declined by the most since 1991 as producers plan spending cuts.
“We have an oversupply of crude,” said Michael Hiley at LPS Partners in New York. “Production keeps going up. There is not a great correlation between the rig count and production because drilling has gotten more efficient over the last several years.”
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