New US Crude Monthly Production Record set & Largest Quarterly Price drop since Pandemic

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According to monthly data released Tuesday by the U.S. Energy Information Administration (EIA), U.S. crude oil production climbed to a record 13.934 million barrels per day (bpd) in April—the highest monthly production rate ever recorded.

The new record surpassed March's 13.718 million bpd by 216,000 bpd, as producers responded to the oil price spike triggered by the Iran war and the closure of the Strait of Hormuz. While oil prices have since retreated as exports from the Persian Gulf gradually resume, April's data captures the industry's response when crude briefly flirted with $120 per barrel.

The Permian Basin once again did the heavy lifting. New Mexico set a new production record at 2.37 million bpd.

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As traffic through the Strait of Hormuz tentatively reopens following the U.S.-Iran deal to make a deal, oil prices on Tuesday were on track to post a 20% monthly decline and a 30% quarterly plunge in the biggest slump in a quarter since the pandemic-driven crash in prices.

In the first quarter of 2020, Brent Crude prices plummeted by 65.5% as the world entered into lockdowns and road transport and industrial fuel demand crashed.

The next steepest decline since then was registered in the quarter ending on Tuesday, with quarterly Brent prices slumping by 30.4%, per data from the ICE exchange compiled by Bloomberg.

For the month of June alone, oil prices were losing as much as 22% as of early Tuesday.

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Both Brent and WTI benchmarks have dropped so much in the past two weeks that they are now nearly level with the prices from just before the first U.S. and Israeli attacks on Iran on February 28.

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