US exports to Asia have already increased with higher Middle East oil prices because of the OPEC-led output cuts and a wide WTI-Brent spread.
Meanwhile, global economic growth has pushed expectations for oil demand higher.
International-benchmark Brent crude oil and U.S. Nevertheless, despite the decline, the level of production exceeds the volume of the past year by nearly 16 percent, and many analysts predict that by the end of 2018, oil production in the USA will break through the mark of 10 million barrels per day.
Besides the weekly drawdown, the EIA also said that United States of America oil production dipped to 9.754 million barrels per day, down from 9.789 million bpd the previous week. Markets had been anticipating a decline in crude oil of about 3.7 million barrels. Brent broke through $67 earlier this week for the first time since May 2015, according to Reuters. USA crude oil exports in 2016 were 55,000 b/d greater than exports in 2015-a slower rate of growth compared with year-over-year changes in 2015 and 2014.
Now, Kloza sees further downside for the commodity that's already tumbled almost 8 percent this year as US production keeps climbing.
Close An oil pump is seen operating in the Permian Basin near Midland in the U.S. state of Texas
The EIA reports USA oil companies have hedged at least 1.2 million barrels per day of 2018 production, taking the estimate from the third quarter 2017 financial statements issued by 47 companies.
U.S. West Texas Intermediate (WTI) crude futures were at $60.21 a barrel, up 0.6 percent from their last close, after hitting a June 2015 high of $60.32 earlier in the day, Brent crude futures - the worldwide benchmark - were also up, rising 0.7 percent to $66.61 a barrel. Rig count data from Baker Hughes (BHGE) on Friday reported a small drop in rig counts for the week, with rigs drilling for gas in the USA down by two to 182, while those drilling for oil remained unchanged at 747.
Extreme cold weather across much of North America could also boost US crude prices by causing production problems in the oilfields. In contrast, production hit 8,428,000 bpd for the week ended July 1, 2016-the lowest production in more than two years.
Total crude oil imports to China, one of the world's biggest oil consumers, rebounded to the second-highest level on record in November at 9.01 million barrels per day (bpd).More news: Powerball, Mega Millions jackpots surpass $300 million