US crude oil exports hit all-time high

As production also closes in on record

01/11/2017 18:54 AST

Oil prices pulled back on Wednesday after data showed U.S. crude exports surged to an all-time high and American drillers pumped near record levels.

The United States exported 2.13 million barrels a day of crude oil in the week through Oct. 27, the first time the country has crossed the 2 million-barrels-per-day mark.

Meanwhile, weekly figures showed total U.S. crude oil production at 9.55 million barrels a day, just short of the Sept. 29 high going back to July 10, 2015. The week's total output was not far off the all-time high of 9.61 million barrels per day, struck the week ending June 5, 2015.

The preliminary weekly figures are later revised.

U.S. West Texas Intermediate crude oil was trading at $54.52 a barrel, 14 cents higher, after topping out at $55.22 earlier in the session.

WTI's discount to international benchmark Brent crude has made U.S. oil more attractive to overseas buyers. Brent was trading at $61.06, up 12 cents, on Wednesday.

"Brent above $60 will keep WTI higher as they export it and replace that expensive Brent," Bob Iaccino, chief market strategist at Path Trading Partners, told CNBC's "Futures Now" on Tuesday.

American drillers have filled some of the supply gap left this year by OPEC and other oil exporters, who have cut production since January in order to drain a global glut of crude. Oil prices have been rallying on expectations that the producers will extend the deal, which is set to expire in March, through the end of 2018.

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