Meanwhile, U.S. crude oil imports have been lower than 8.5 million bpd in each month since 2013 when the shale revolution was in its first period of expansion, compared to more than 10 million bpd in monthly imports in numerous years of the 2000s. Brent, the global benchmark, fell 83 cents, or 1.28%, to $63.98 a barrel on ICE Futures Europe.
Goldman Sachs sees global benchmark Brent crude oil trading at United States dollars 82.50 per barrel within the next six months. Last month, the EIA reports, these averaged 1.4 million bpd, versus half this amount a year earlier.
Another drop in crude prices on Thursday - this time by 1 percent for West Texas Intermediate, which represents the longest losing streak since last April 2017 - has fortified bearish sentiment in the analytical community, with predictions that oil will return to the mid-$50s shortly. Brent was heading for a weekly loss of almost 8 percent; US crude was on track for a 9 percent weekly drop.
Recently, crude prices went above US$ 70 per barrel and slumped more than 1% on Tuesday. The EIA said this year the US will produce an average of 10.6 million bpd, rising to 11.2 million bpd next year. Earlier this week, the USA government forecast production rising above 11 million barrels a day this November, which would exceed top world producer Russia's current level.
The falls come amid a rout in global share markets as inflation fears grip investors.
Week over week, US crude oil exports fell by 478,000 barrels a day last week, and USA production increased by a whopping 332,000 barrels a day to 10.25 million barrels a day.
New data shows that USA crude stockpiles increased by 1.9 million barrels last week, contradicting an earlier report that said inventories had dropped.
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The US Energy Information Administration (EIA) has released figures that show China surpassed the US in annual gross crude oil imports in 2017, importing 8.4 million bpd compared with 7.9 million bpd for the US.
"Clearly, the data points to an imbalanced market and oil prices have responded by turning sharply lower", he added. The automobile sector has been one of the biggest beneficiaries of the rise in employment levels, with most countries reporting higher auto-sales numbers, which in turn reflect in greater demand for petroleum products such as gasoline.
The big sell off was across all stocks and many market watchers are hoping this is just a correction.
Based on the current price action, the direction of the market the rest of the session will be determined by trader reaction to the steep downtrending Gann angle at $62.16.
Futures fell as much as one per cent in NY after Department of Energy data showed US crude production jumped to a record 10.25 million barrels a day last week.
RBC Capital Markets says global supply and demand will be impacted in April by Venezuela. The firm said in its latest annual oil and gas sector outlook that Chinese oil product shipments overseas would increase by 4% this year to reach 41 million tonnes, Reuters reported.