WTI Crude oil futures hovered around the critical $70 per barrel mark. The risk sentiment was choppy in thin holiday trades. WTI Crude oil has been largely positive over last few days as markets eye global geopolitical developments and diverse cues from other key commodities. Gains have been capped as markets eyed elevated US crude oil output. The US EIA stated in a latest update that Crude oil production in the U.S. Lower 48 (L48) states, which excludes Alaska and offshore production, reached a record 11.3 million barrels per day (b/d) in November 2024. Crude oil production in the L48 states increased 3% year over year despite fewer active rigs in most major producing regions, demonstrating gains in operational efficiency. Rigs drill oil wells, and an increased number of active drilling rigs indicate that U.S. producers are drilling more wells, which generally results in growing oil production. Latest EIA data shows that the active rig count decreased year over year in 2024 through November in all L48 primary crude oil producing regions except the Bakken. The region with the most activity, the Permian Basin, declined from 310 rigs to 303 rigs between November 2023 and November 2024.

Powered by Commodity Insights