EIA Paints Bearish Picture for Oil Market With Record Supply, Low Demand

In March, U.S. crude oil production hit a new high at 13.488 million barrels per day, surpassing the previous record set in October 2024. The increase was driven by Permian and Gulf Coast operators, despite a slowdown in drilling activity elsewhere. However, oil demand in the U.S. dipped to 19.95 million barrels per day, the lowest in a year, posing challenges for refiners and exporters as summer approaches. Although crude imports slightly rose in March, U.S. drillers are scaling back operations, with the rig count dropping to its lowest level since late 2021. This trend highlights a disconnect between record oil production and declining demand, setting the stage for an uncertain summer in the oil market.