Dec 5, 2023 - Economy

Record U.S. oil production is pushing prices down

Data: Energy Information Administration; FactSet; Chart: Axios Visuals
Data: Energy Information Administration; FactSet; Chart: Axios Visuals

U.S. oil production has touched new record highs in recent weeks.

Why it matters: American production is part of the reason that recent efforts by OPEC — and its strategic ally, Russia — haven't been able to end the slide in global oil prices.

  • Economic weakness in China — the world's largest oil importer — is dampening demand and also playing a role in the price drop.

State of play: U.S. benchmark oil prices are down nearly 20% in the fourth quarter, to below $75 a barrel.

  • The national average price for a gallon of regular gasoline is $3.24, according to AAA. That's down 5% in the last month.
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