Data from the U.S. Energy Information Administration shows that for the week ending September 4, U.S. crude oil production rose to 13.9 million barrels per day, the highest level ever recorded. Excluding the Strategic Petroleum Reserve, commercial crude oil inventories decreased by 391,000 barrels to 424.1 million barrels, with inventory levels roughly in line with the five-year seasonal average.

Weekly output increased by 85,000 barrels. U.S. crude production added 85,000 barrels per day from the prior week, reaching the record 13.9 million barrels per day. However, the weekly data includes a benchmark adjustment made by the EIA that raised estimated output by approximately 65,000 barrels per day, equivalent to 0.47% of the week's production. The EIA projects U.S. crude output will average 13.8 million barrels per day in 2026, surpassing the annual record of 13.7 million barrels per day set in 2025. For the first half of 2026, production is expected to average 13.7 million barrels per day, an increase of 300,000 barrels per day year over year.

New supply is primarily coming from the Permian Basin in Texas and New Mexico, as well as the U.S. federal waters of the Gulf of Mexico. The EIA expects Permian Basin output to grow 3% to 6.8 million barrels per day in 2026. Offshore projects including Shenandoah, Ballymore, Whale, and Salamanca coming online are also underpinning Gulf of Mexico production growth.

Commercial crude inventories saw a modest decline. Despite domestic output reaching a new high, commercial crude stockpiles fell by roughly 400,000 barrels for the week to 424.1 million barrels, slightly below the 424.6 million barrels recorded in the same period last year. Refineries processed an average of 17.6 million barrels per day during the week, up 91,000 barrels per day from the prior week. Capacity utilization edged down from 98.0% to 97.8%, still remaining at elevated levels.

Crude imports increased by 53,000 barrels per day to 6.8 million barrels per day. The Strategic Petroleum Reserve decreased by 1.2 million barrels over the same period to 285.4 million barrels. Crude inventories at Cushing, Oklahoma, fell by 684,000 barrels to 21.8 million barrels.

Product stockpiles rose while demand indicators softened. Gasoline inventories increased by 1.3 million barrels to 206.9 million barrels, and distillate inventories grew by 2.1 million barrels to 106.3 million barrels. Gasoline stocks remain 5% below the five-year seasonal average, while distillate stocks are 13% lower. Over the past four weeks, U.S. petroleum product supplied averaged 20.1 million barrels per day, down 3.7% year over year.

Among those figures, gasoline product supplied declined 1.4% year over year to 8.8 million barrels per day, while distillate product supplied fell 2.6% to 3.7 million barrels per day. Total U.S. commercial petroleum inventories, including all products, increased by 6.3 million barrels for the week. The breakdown of the data shows that the drawdown in commercial crude stocks did not translate into a tightening of overall petroleum product inventories.