REUTERS, London

US crude oil production set a record for the second month running in September, highlighting the challenge to Saudi Arabia and its Opec+ partners as they cut their own production to boost prices.

Repeated Opec+ output cuts since the fourth quarter of 2022 have thrown a lifeline to US producers, averting a deeper slump in prices and conceding more market share to them.

US crude and condensate production increased by 224,000 barrels per day (b/d) to 13.24 million b/d in September from August, according to the USEnergy Information Administration.

Crude and condensate production had increased by 342,000 b/d over the previous three months (annualised growth of 11 percent) and was 750,000 b/d higher than a year earlier (an increase of 7 percent).

The large increase in domestic production has contributed to the accumulation of crude inventories and softening of prices since the start of the fourth quarter.

In the most recent month, production increased in the federal waters of the Gulf of Mexico (+108,000 b/d) and Alaska (+19,000) as well as in the Lower 48 states (+97,000).

Lower 48 production climbed to a record of 10.8 million b/d, surpassing the pre-pandemic peak of 10.5 million b/d set in December 2019.

Lower 48 output had increased by 210,000 b/d over the previous three months (an annualised rate of +8 percent) and 750,000 b/d over the previous year (an increase of +7 percent).