An increase in estimated U.S. crude oil production from the International Energy Agency pushed West Texas Intermediate prices down nearly 2 percent Friday.
The IEA, which has headquarters in Paris, said in its monthly market report global oil supplies rose by 1.3 million barrels per day year-on-year to an estimated 94 million bpd in February. The increase was led mostly by producers outside the Organization of Petroleum Exporting Countries.
"Final December and preliminary current-quarter data show higher‐than‐expected US crude supply, raising the 2015 North American outlook," the IEA report read.
Oil prices are down about half from the June 2014 highs above the $100 per barrel mark because markets are weighed heavily on the supply side. IEA confirmed U.S. data showing crude oil stockpiles in the United States are at record levels.
The low price of crude oil is forcing many in the industry to cut spending on exploration and production. Shale-rich North Dakota reported a drop in oil production from the December record, though IEA said overall U.S. output has yet to decline because of the low oil price climate.
WTI prices surged as high as $53.03 per barrel in early February, but have since drifted back toward the seasonal low of $44 per barrel. WTI early in the Friday session was down about 2 percent to $46 per barrel.
A late November decision from OPEC to keep production stable despite the drop in oil prices helped advance a bear market that began in June. OPEC said it adopted the business-as-usual mantra in an effort to protect its market share in the shale era.
IEA said oil production from OPEC was down 90,000 bpd in February, in large because of declines from member states Libya and Iraq, both dealing with violence associated with the self-proclaimed Islamic State.
The price for Brent crude oil, the global benchmark, was down less than 1 percent from the previous session to $56.59 in early Friday trading.
