On Friday, the US Energy Information Administration (EIA) said that the country’s crude oil output plummeted in May at a record pace.
In May, the US crude oil production fell by a record 2 million bpd to 10 million bpd, the steepest monthly fall since the data started in 2005, as crude price crashed due to oversupply from the oil price war and slumping demand due to the coronavirus pandemic.
Top crude producer Texas slashed output by 764,000 bpd and North Dakota’s output slumped by 353,000 bpd in the month. Offshore drilling in the US Gulf of Mexico went down by 300,000 bpd.
In May, gasoline demand plunged by 235% year-on-year at 7.2 million bpd while demand for diesel and other distillate fuels fell 12.6% from a year earlier to 3.5 million bpd.
Regarding gas, the US also saw a sharp fall in May output by 5.7 bcfd to 97.4 bcfd, the lowest monthly average since October 2018, and the biggest monthly drop since September 2008.
The country’s biggest gas-producing state Texas posed a record in monthly fall by 8.1% or 2.3 bcfd to 26.4 bcfd in may. The second-biggest gas producer state Pennsylvania also posted a record monthly fall of 0.7 bcfd to 19.3 bcfd.
