Oil stock prices have jumped in the past few days following a record supply of crude oil and a new round of refinery work, but crude oil has yet to deliver a significant increase in demand.
In an effort to offset that, companies are ramping up production to meet the demand.
The U.S. Energy Information Administration (EIA) reported Wednesday that U.T. Energy reported a record 7.4 million barrels per day (bpd) of crude production.
That’s up from 6.9 million bpd in July and a record high of 8.1 million bp in January.
The agency also reported that the U.N. Energy Security Council (UNECE) forecast production for the first time ever at a record 5.6 million bps, which is up from 5.1 billion bpd.
Oil stocks have gained a lot over the past week, and the increase in crude production may be one reason for the uptick in the price.
But the stock market is not the only factor at play.
Oil prices also rose because of the new refinery work.
The EIA also reported the oil industry was expected to spend $3.5 billion on refinery work in 2019.
The refinery work will improve refinery operations, but it also will contribute to a glut of crude.
This glut in crude will also likely drive prices higher.
As more refineries are being built, and refinery capacity increases, the demand for oil is increasing and prices are rising.
This increase in oil demand will boost prices even more.
But this will not lead to a rebound in oil prices.
This is not what oil bulls were hoping for.