This week saw a sharp increase in oil prices following an announcement by President Trump on discussions with Chinese President Xi may provide relief from the recent trade war and fears of conflict between the U.S. and Iran.
According to the EIA,” U.S. crude oil imports, have steadily decreased during this period as domestic crude oil production has increased. In addition, U.S. crude oil imports from members of the Organization of the Petroleum Exporting Countries (OPEC) have declined, in particular, following increases from other countries such as Canada. Canadian crude oil can substitute for certain OPEC grades and have lower transportation costs when shipped by available pipeline capacity.”
Additionally, the EIA now projects that shale oil production in the U.S. will reach a record-high 8.52 million barrels per day in July. The largest increases will come from the Permian Basin in West Texas and the Bakken Shale in North Dakota.
The U.S. average regular gasoline retail price fell more than 6 cents from the previous week to $2.67 per gallon on June 17, 21 cents lower than the same time last year.