U.S. August Crude Oil Production Lowest Since
1954-EIA
WASHINGTON (Reuters) - Crude oil production in the United
States averaged just 6.3 million barrels per day (bpd) in August,
the lowest level for that month since 1954, the U.S. Energy
Information Administration's preliminary estimates showed.
Low oil prices have made it too expensive in many parts of the
U.S. to continue drilling, while it's cheaper to buy crude from
foreign suppliers.
That trend was in evidence last month, when U.S. imports of
crude averaged 9.3 million bpd -- up 700,000 bpd from last
year's record high for the month.
The price of crude oil futures trading on the New York Mercantile
Exchange has slid 37 percent since Oct. 3, 1997, when the
front-month contract traded at $22.76 a barrel. On Friday, the
October crude oil contract settled at $14.34.
The EIA said U.S. oil stocks at the end of August (excluding
crude held in the Strategic Petroleum Reserve), totaled 332
million barrels, the highest August ending stocks since 1993.
Total U.S. demand for all petroleum products last month
averaged 19.4 million bpd, almost 800,000 bpd above the August
record set in 1996.
Finished motor gasoline demand and production averaged 8.6
million bpd and 8.2 million bpd, respectively, each a new record
high for August. End-of-the-month gasoline stocks stood at 164
million barrels, 14 million barrels more than last August, the EIA
said. One barrel holds 42 gallons.
Distillate fuel oil demand, mostly for diesel fuel and heating oil,
averaged 3.5 million bpd in August, a record high for the month.
Distillate production also reached a record of 3.6 million bpd.
At the end of August, distillate stocks 144 million barrels, 11
million barrels higher than last year, and the highest level for
August since 1982, the EIA said.
Oil stocks gaining strength?....
Jeff
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