U.S. Oil Production Hits Record High in June: What it Means for Investors

US crude oil production reached a record high of 13.58 million barrels per day in June, surpassing the same month in 2024 by 133,000 barrels per day. The Energy Information Administration (EIA) also reported a rise in supplies of crude and petroleum products, as well as an increase in gasoline and jet fuel demand. This record production has raised concerns about potential oversupply and lower crude prices. Major oil companies such as Chevron (CVX), Occidental Petroleum (OXY), and Diamondback Energy (FANG) are contributing to the increase in production.

US crude oil production reached a record high of 13.58 million barrels per day in June 2025, surpassing the same month in 2024 by 133,000 barrels per day. The Energy Information Administration (EIA) reported this significant increase, which has sparked concerns about potential oversupply and lower crude prices. The EIA's Petroleum Supply Monthly series indicated that crude production in top-producing state Texas rose to 5.72 million bpd, its highest since April, while output in New Mexico increased to 2.24 million bpd, its highest since March [1].

The EIA also reported that the federal offshore Gulf region's output rose to its highest since October 2023, gaining 67,000 bpd to hit 1.92 million bpd in June. The increase in product supplied of crude and petroleum products in the U.S. rose to 21 million bpd, its highest since October 2024. Gasoline demand reached 9.23 million bpd in June, its highest since July 2024, while jet fuel demand hit its highest since August 2018, gaining 84,000 bpd to 1.85 million bpd [1].

Gross natural gas production in the U.S. lower 48 states also reached a record high of 120.7 billion cubic feet per day in June, up from 120.2 bcfd in May. This increase was driven by Texas and Pennsylvania, where monthly output rose by 0.7% and 1% respectively [1].

Major oil companies such as Chevron (CVX), Occidental Petroleum (OXY), and Diamondback Energy (FANG) are contributing to the increase in production. The record production has raised concerns about potential oversupply and lower crude prices. The EIA's data suggests that the market may be approaching a state of oversupply, which could lead to downward pressure on prices. However, the EIA also notes that gasoline and jet fuel demand have been robust, which may help to absorb some of the increased production.

The strategic use of Ukrainian drone attacks on Russian oil refineries in 2025 has reshaped global energy security dynamics, exposing vulnerabilities in Russia’s energy infrastructure while triggering cascading economic and geopolitical risks [2]. The attacks have forced Russia to pivot from refined product exports to unprocessed crude, reducing profit margins and straining its war economy. This has led to rerouted crude trade flows, increased maritime emissions, and U.S.-led sanctions tightening access to Russian oil infrastructure. The strategic use of Ukrainian drone attacks on Russian oil refineries in 2025 has reshaped global energy security dynamics, exposing vulnerabilities in Russia’s energy infrastructure while triggering cascading economic and geopolitical risks [2].

The conflict has intensified risk contagion in global crude markets, with tail risk spillover effects rising due to Russia’s strategic vulnerabilities [2]. Analysts note that while Russia’s diesel surplus and excess refining capacity have mitigated immediate shortages, the erosion of export infrastructure could undermine its economic resilience [2]. The U.S. and EU have also tightened sanctions enforcement, including increased scrutiny of tankers in the Baltic Sea, to limit Russian oil exports [2]. However, the war’s geopolitical ripple effects extend beyond oil. Escalations in the Middle East, such as tensions between Iran and Israel, threaten to disrupt the Strait of Hormuz, potentially pushing oil prices to $110–$130 per barrel [2].

Investors must navigate this evolving landscape by prioritizing resilience, diversification, and alignment with the accelerating energy transition. Key opportunities lie in refining hubs in the Middle East and Africa, sanctions-compliance technologies, and renewable energy transition [2].

References:

[1] https://finance.yahoo.com/news/us-oil-production-hit-record-150959936.html
[2] https://www.ainvest.com/news/assessing-strategic-economic-impact-ukrainian-drone-attacks-russian-oil-refineries-energy-security-geopolitical-risk-global-oil-markets-2508/