Oil Daily | U.S. Crude Production Hits Record High in June as California Refining Faces Delays

【Global Oil Supply and Demand】 U.S. crude oil production reached a record high of 13.58 million barrels per day in June, surpassing May's output by 133,000 barrels and exceeding previous estimates. Growth came from New Mexico and the Gulf of Mexico, while California saw a decline. The monthly data reveals discrepancies with weekly estimates, highlighting the inaccuracy of model-driven weekly figures. 【Oil-Producing Countries Dynamics】 Norway's annual maintenance on gas fields is underway, reducing Norwegian gas supplies by a third in early September. The maintenance, affecting facilities like the Troll gas field and Kollsnes plant, is already reflected in Europe’s gas prices. The EU is accumulating gas inventories aided by weak LNG demand in Asia, maintaining lower gas prices despite reduced Norwegian flows. When the Taliban regained control over Afghanistan four years ago, China swiftly signed an oil field development deal. However, the deal has since collapsed, with mutual accusations of breaches. The Taliban claims the Chinese firm CAPEIC failed to fulfill investment and royalty obligations, while China accuses the Taliban of forcibly taking over project sites and detaining Chinese personnel. 【Latest Oil Policies】 California regulators are expected to delay enforcing a cap on refinery profits for five years. The cap, under Senate Bill X1-2, aimed to curb gasoline price spikes. Despite Governor Newsom's 2022 accusations against refiners, major companies are shutting down refineries due to policies and market changes, reducing the state's refining capacity significantly. 【Others】 Voters in Guyana, a rapidly growing economy due to its oil resources, are preparing for elections. President Irfaan Ali seeks reelection, while opposition parties criticize the government's oil income management and demand higher revenue shares from ExxonMobil’s contract. Exxon, which recently increased Guyana’s oil production capacity, plans to maintain the existing contract terms.