US production of oil came in at 10.9 million barrels per day last week, according to data released Wednesday by the US Energy Information Administration, up almost 17 percent from the year-ago level.
Analysts polled by S&P Platts expect the EIA to report a 2.6 million barrel drop in crude supplies and a 200,000 barrel increase in gasoline supplies. The American Petroleum Institute, an industry group, said late Tuesday that oil stockpiles rose by 830,000 barrels last week. The kingdom reported that it increased production in May to about 10 million barrels a day.
Crude has more than doubled since bottoming out below $30 a barrel in early 2016, causing USA motorists to face the highest gasoline prices since late 2014.
Exxon Mobil (XOM) shares closed down 1.1% at 81.51 on the stock market today. BP (BP) dipped 0.2%, and Royal Dutch Shell (RDSA) lost 0.5%.More news: UN Assembly blames Israel for Gaza violence
For 2019, IEA's estimate of demand anticipates growth of 1.4 million barrels of oil per day, amid a boost from the petrochemicals sector, where some projects are coming on stream earlier than previously thought.
This could lead to a supply gap in crude late next year if OPEC can't make up for lost production, the IEA said in its monthly report Wednesday.
With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing to more than 10 million bpd, supplies from all three top producers are increasing.More news: Two Norwegian lawmakers nominate Trump for Nobel Peace Prize
"It is possible that the very small number of countries with spare capacity beyond what can be activated quickly will have to go the extra mile".
The full organization, plus non-members like Russian Federation who agreed to take part in the earlier round of production cuts, are meeting June 22 and 23 in Vienna.
"The United States shows by far the biggest gain (about 75 percent of the total across 2018 and 2019), but recently this expansion has not been without stress", the report said, referring to a gap in recent weeks between the USA and European oil futures contracts.
The IEA noted meanwhile that only Saudi Arabia and OPEC's other Middle East members have the ability to ramp up production swiftly to alleviate any supply shortages in the market.More news: Trover Saves the Universe arrives early 2019 for PlayStation 4 and PSVR
Saudi Arabia's oil minister is flying to Russian Federation this week to discuss ways to manage an output boost both producers say they want to propose at an OPEC summit next week, officials at the group said Wednesday. That is viewed as vital in the event of further output drops from Venezuela, and expected shortfalls from Iran when U.S. sanctions bite later this year.