U.S. crude output drops in October as demand falls further
U.S. crude oil production was down more than 2 million barrels per day (bpd) in October from earlier this year, as weak prices and tepid demand due to the coronavirus pandemic weighed on output, a government report showed.
The report suggested that crude demand in the world’s largest economy remained below the highs of earlier this year, and production was largely flat since cuts began in the spring.
Total U.S. oil demand in October was down by 2.15 million bpd, or more than 10% below the same month a year earlier. The decline was sharper than the 9.5% seen in September.
Oil output dropped by 442,000 barrels per day to 10.42 million bpd in October, the latest month for which data was available. The losses were led by declines in the offshore U.S. Gulf of Mexico, according to the Energy Information Administration report.
Storms that month caused offshore production shut-ins, contributing to the losses. Still, even without the Gulf declines, production remained below pre-pandemic levels.
Meanwhile, U.S. natural gas production for October was 99,568 million cubic feet a day, down from 100,221 in September.
Reporting By Jessica Resnick-Ault; Editing by Dan Grebler
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