US Oil Production Hits Record 13.8M Barrels Daily in August

U.S. oil production reached a record high of approximately 13.8 million barrels per day in August, surpassing previous Energy Information Administration estimates and marking the third consecutive monthly record. Despite this production increase, U.S. diesel demand declined by 4.9% in August, signaling some softness in this economic indicator, while jet fuel demand increased by 2.7% year-over-year. The production surge is supported by robust output from regions including the Permian Basin and Guyana, with energy companies ExxonMobil and Chevron ramping up output even amid expectations of lower prices. Geopolitical factors, such as new U.S. sanctions on Russian oil majors and tariffs on Russian crude importers like India, have influenced global energy trade dynamics, leading to increased U.S. energy exports to Asian countries, backed by agreements reached by President Donald Trump with leaders of China and South Korea. Market forecasts project Brent crude prices to average around $62 per barrel in late 2025, with a potential decline to $52 in 2026, even as prices currently hover near $65 per barrel. Overall, the data highlights a complex energy market environment characterized by rising U.S. production, shifting global trade flows, and mixed demand signals.