U.S. crude-oil production in May reached its highest monthly level in 43 years, according to the Energy Information Administration on Tuesday.
In its latest Short-term Energy Outlook Report, the government agency also raised its estimates on U.S. crude-oil output for 2015 and 2016, compared with previous estimates.
May production averaged about 9.6 million barrels a day. In May of 2014, production average almost 8.4 million barrels a day, which was the highest monthly average since March 1988.
“Despite the large decline in crude-oil prices since June 2014, this May’s estimated oil output in the United States is the highest for any month since 1972,” Adam Sieminski, EIA administrator, said in a statement. Oil prices still trade more than 40% below their peak of around $106 in June of last year.
“Production still is expected to decline in the second half of this year,” said Sieminski.
The EIA report estimates 2015 U.S. oil production of 9.43 million barrels a day — that is up from a previous estimate of 9.19 million. Output in 2016 is expected to decline to 9.27 million barrels a day, but that figure is a bit higher than the previous estimate of 9.21 million barrels.
West Texas Intermediate crude prices CLN5, -1.30% are forecast to average $55.35 a barrel this year and $62.04 a barrel in 2016, the EIA said. Those compare with previous estimates of $54.32 for 2015 and $65.57 for 2016. July crude traded above $60 Tuesday on the New York Mercantile Exchange.
Brent crude LCON5, -1.17% the global benchmark, was forecast to average $60.53 a barrel this year and $67.04 a barrel next year. Those numbers are down from estimates of $60.79 for 2015 and $70.49 for 2016. Brent crude on Tuesday traded close to $65.
