The US oil and gas rig count remains flat at 539, near four-year lows. Oil inventories set to accumulate at 2.96 million barrels per day next year, pushing towards a record supply glut. IEA reports global oil demand growing slowly, while OPEC+ plans to increase production despite warnings of oversupply.

US crude oil benchmark at $63, close to a four-year low. Analysts predict a break-even point of $60 per barrel for new wells, not factoring in elevated tariffs. Wood Mackenzie estimates a slower transition to clean energy could increase global oil demand by 5% annually starting in the mid-2030s.

Trump administration’s pro-oil initiatives have not met expectations. Oil output increasing slower than last year, prices at the pump stable since inauguration. Crude oil exports declining, with industry executives pessimistic. EIA predicts crude prices falling below $60 by year-end, averaging close to $50 in 2026.

EIA expects US crude output to reach a record 13.6 million barrels per day in December, then decrease to 13.3 million per day. Complex policy decisions impacting the oil industry, with uncertain future demand and supply dynamics. Trump administration’s efforts to boost oil production face challenges amid changing market conditions.

Read more at Yahoo Finance: Oil Drilling Stuck Near 4-Year Lows, Thanks to Energy Policy Puzzle