- US oil production hit a record of 13.4 million barrels per day last week.
- The EIA predicts global oil consumption will continue to rise this year.
- Oil prices have dipped recently amid worries of an economic slowdown.
US oil production notched an all-time high of 13.4 million barrels per day last week, according to data from the Energy Information Administration.
That number is up from 12.6 million barrels each day a year ago, making for an 800,000-barrel increase.
The new production record comes just months after the EIA announced in March that the US produces more crude oil than any other country.
US crude prices were up 2.8% on Wednesday at 3:40 p.m. ET, trading at $75.28 a barrel. Both US and international oil prices have dipped in recent weeks as energy traders eye a possible slowdown of the US economy.
In its latest short-term energy outlook, the EIA said it expects natural gas inventories in the US to reach 3,954 billion cubic feet by the end of October, which is the most natural gas the country has had in storage since 2016.
And as US oil production continues to increase, the EIA predicts global consumption will only keep growing (though slightly less than previously predicted, due to slowing economic growth in China that's expected to stall its gas usage).
The administration expects that oil prices will rise in the latter half of the year as global oil inventories fall, partly driven by OPEC+ production cuts enforced on member countries. It expects an annual average Brent crude oil price of $86 per barrel in 2025.
Goldman Sachs analysts also say they foresee a recovery for oil prices.
"We expect oil prices to recover on solid Western demand and a likely positioning rebound," the analysts said in a note on Tuesday.
Oil prices are down about 7.5% from last year as traders adjust their outlook for disruptions stemming from geopolitical conflicts in the Middle East, as well as concerns of a slowing US economy.