July 31, 2017 / 7:12 PM / 5 months ago

U.S. crude production in May hit 16-month high on Texas increase

(Reuters) - U.S. crude output rose to the highest level in more than a year, boosted by gains in Texas and offshore Gulf of Mexico, the Energy Information Administration said in monthly data released on Monday.

Production in May rose 59,000 barrels per day to 9.17 million bpd, compared with 9.11 million barrels per day in April.

The figures reflected a 27,000-bpd upward revision to April’s production data. Output in Texas rose by 78,000 bpd while North Dakota production fell 12,000 bpd from the previous month.

U.S. crude output and demand have been closely watched by the oil market as some analysts expect that growing output from U.S. shale formations could offset OPEC’s production cuts aimed at reducing a global supply glut.

The agency said U.S. demand for distillate fuel in May rose 6 percent from a year earlier, or 224,000 bpd to 3.969 million bpd according to the EIA’s Petroleum Supply Monthly report. Gasoline demand rose 1.6 percent, or 154,000 bpd, to 9.59 million bpd. Total U.S. oil demand rose 4.3 percent in the month to 20.21 million bpd.

The total U.S. output is in line with the EIA’s forecast for crude output of 9.18 million bpd in the second quarter of the year.

“At these levels we do need a steady pattern of bullish news to push prices higher,” said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut.

Reporting by Jessica Resnick-Ault in New York; Editing by Jeffrey Benkoe and Lisa Shumaker

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