U.S. crude oil production hit a record high in June of this year, according to the Energy Information Administration (EIA).
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During June, oil production in America was 133,000 barrels per day more than in the same month of 2024, reaching a record production level of 13.58 million barrels of crude per day. The U.S. is the world’s largest producer of crude oil and an energy superpower.
The EIA says that supplies of crude and petroleum products in the U.S., a proxy for demand, rose by 684,000 barrels per day during June to their highest level since October 2024 at 21 million barrels a day. At the same time, gasoline demand rose in June to 9.23 million barrels per day, its highest level since July 2024, while jet fuel demand hit its highest reading since August 2018.
Too Much Production?
The record production comes as major U.S. oil companies such as Chevron (CVX), Occidental Petroleum (OXY), and Diamondback Energy (FANG) ramp up production in the Permian Basin region of Texas. U.S. President Donald Trump has been pushing oil and natural gas companies to “drill, baby, drill.”
However, there are concerns among energy and commodities analysts that there might be too much oil production underway, swamping the global market with supply and pushing crude prices lower. Those worries have been exacerbated by ongoing production increases from the Organization of the Petroleum Exporting Countries and its allies (OPEC+).
West Texas Intermediate (WTI) crude oil, the U.S. standard, is currently trading at $63.99 a barrel.
Is CVX Stock a Buy?
The stock of Chevron has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on 10 Buy and five Hold recommendations issued in the last three months. The average CVX price target of $170.67 implies 6.13% upside from current levels.
