Most forecasts show USA crude output growing about 500,000 to 600,000 barrels per day through the end of 2018, said David Fyfe, chief economist at global commodity trading firm Gunvor Group in Geneva, Switzerland.
Kilduff cautioned on the relationship of a rising dollar that is also impacting the crude price right now.
Also later Friday, Baker Hughes Inc.is set to release its weekly data on the number of rigs drilling for oil in the USA, a bellwether for activity in the sector.
This is because money managers now own more than one billion barrels of crude oil.
United States production surged to 10.25-million barrels per day (bpd) last week, according to government data released on Wednesday, and is forecast to top 11-million bpd this November, a year earlier than previously expected.More news: More Doubts About Mr. Steele
Abu Dhabi reportedly decided on the purchase of 700,000 barrels of light domestic crude because of the high quality of American condensate, which is more suitable to the Arab nation's refineries.
"If that project for some reason should stall", said Corpus Christi's Pedersen, "that would really make US crude less competitive in Asia".
Crude is struggling to extend last month's largely dollar-driven gains on speculation that USA output will impede efforts by the Organization of Petroleum Exporting Countries (OPEC) to drain a glut.
The crude oil price moved closer to its lowest levels since the beginning of 2018 against the rising USA production, which casts doubt on the efforts of the Organization of Petroleum Exporting Countries (OPEC) to tighten the market and stimulating prices.
Statistics show that this diminishing dependence on foreign oil will continue well after the first - or possibly second - term of the Trump administration.More news: Pixel Customers Are Suing Google Over Microphone Defects
Recently, crude prices went above US$ 70 per barrel and slumped more than 1% on Tuesday.
However, they also say they will be nimble as they monitor the market, and the recent comments on boosting production capacity indicate that countries stand ready to act if supplies are needed.
At around $60.50 per barrel, US crude is now some $4 per barrel cheaper than Brent, off which most other crudes are priced. However, with relatively little production growth from members of the Organization of the Petroleum Exporting Countries (OPEC) and higher global consumption, the global oil balances remain largely unchanged from the forecast last month.
West Texas Intermediate for March delivery traded at $61.70 on the New York Mercantile Exchange, down 9 cents at 8.58am in Tokyo.
Despite all these challenges to the traditional oil order, established producers are putting on a fearless face.More news: Vornado Realty Trust (NYSE:VNO) Upgraded by SunTrust Banks to Buy
Now the market fundamentals are changing as recent increases in prices brings more oil out of US, some analysts say.