Crude oil output hits record high in Texas

Foreign news on August 1, as US demand climbed to a seasonal peak, crude oil production in Texas soared to a record high in May.

Crude output in Texas, which accounts for about 40% of U.S. crude output, climbed to 5.49 million barrels per day, the most on record in monthly government data going back to 1981. Meanwhile, U.S. oil demand surged to 20.8 million bpd, its highest seasonal level ever, according to data from the U.S. Energy Information Administration on Monday.

The surge in consumption has been alarming given that it has risen amid rising interest rates and a weaker demand outlook. West Texas Intermediate crude futures plunged more than 11% in May but have since recovered to above $80 a barrel.

Texas production is likely to grow further as oil majors increase their U.S. presence. During the April-June period of this year, Exxon Mobil's oil and gas production in the Permian oil well reached a record 622,000 barrels, and it is expected to grow by 10% this year.