The U.S. Energy Information Administration (EIA) released its weekly petroleum status report Wednesday morning.
The costs of producing shale and deep-water oil have fallen in recent years, enabling the US oil industry to be more competitive with the Organization of the Petroleum Exporting Countries (OPEC), according to the Institute for Energy Research (IER). But the EIA also reported a fall in crude production.
The U.S. government agency also reported an unexpected climb of 3.3 million barrels in domestic crude inventories.
The spat adds to other lingering doubts about whether the agreement will be enough to support prices, including rising production from countries exempt from the agreement - Libya and Nigeria.
Iran is the only OPEC member with room for growth under a current deal to stem production in an effort to balance the market. Imports rose by 356,000 barrels a day last week, while crude exports fell by 746,000 barrels a day, the biggest drop ever.
If Qatar is shunned, what reason does it have to stick to its agreed crude oil production levels?
Distillate inventories increased by 4.4 million barrels last week and remained near the upper limit of the average range for this time of year. United States distillate inventories rose by 1.75 MMbbls during the same period. Total volume traded was about 11 percent above the 100-day average. That would top the previous annual record of 9.6 million barrels a day in 1970.
The oil price has ignored rising geopolitical tensions in the Middle East, as a three-year old crude surplus has wiped out any real fear over supply, but one of the world's largest security consultants says there are red flags the market can not ignore.
Shares of Exxon Mobil (XOM) dipped 0.2% to 81.04 in premarket trading on the stock market today.