Oil’s rally after the latest round of U.S. sanctions on Russia’s energy sector should make President Donald Trump cautious about implementing additional restrictions, according to Commerzbank Research. “Low energy prices are of great importance for his economic policy agenda,” commodity analyst Carsten Fritsch says in a note. Trump is expected to use the threat of sanctions as leverage in negotiations with Russian President Vladimir Putin to end the war in Ukraine, while further tightening of sanctions on Iran seem widely expected.

The US is the largest crude oil producer in the world, pumping out nearly 13 million barrels on average every day in 2023, an all-time record, according to new data from the US Energy Information Administration.

That’s an awkward milestone for President Joe Biden, who has arguably done more than any modern president to facilitate America’s transition away from fossil fuels to greener alternatives.

The U.S. led the world in oil production for the sixth consecutive year in 2023, according to a new report from the Energy Information Administration (EIA).

Crude oil production in the U.S., including condensate, averaged 12.9 million barrels per day (b/d) in 2023 — a level which surpassed the American and global record of 12.3 million b/d that the U.S. set in 2019. Average monthly U.S. crude oil production also reached a record high in December 2023 at more than 13.3 million b/d.

In mid-December, I wrote here that the U.S. had set a new annual oil production record:

“The U.S. set a new annual oil production record on December 15, based on data from the Energy Information Administration. Although the official monthly numbers from the EIA won’t be released for a couple of months, we can calculate that a new record has been set based on the following analysis.”

DETROIT (FOX 2) - Michigan gas price averages over the weekend were the highest they have been this year.

According to AAA, a gallon of unleaded gas cost an average of $3.57 on Saturday. The previous record-high price, $3.45, was set last week before the weekend jump.

Saturday's high fell one cent to an average of $3.56 ahead of Monday's data release. The price is 11 cents more than this time a week ago, 31 cents more than this time a month ago, and 1 cent more than a year ago.

U.S. crude prices fell more than 4% Wednesday after the Organization of Petroleum Exporting Countries delayed a pivotal meeting on production cuts that was scheduled for the weekend.

The West Texas Intermediate contract for January dropped $3.27, or 4.2%, to $74.50 a barrel, while the Brent contract for January fell $3.32, or 4.03%, to $79.13 a barrel.

U.S. oil prices dropped nearly 5% Thursday, hitting four-month lows.

Why it matters: The slide in crude oil is yet another indication that the balance of power has swung toward sharply slowing inflation in the U.S. economy.

That could be good news for drivers, suggesting that gasoline prices — already down about 11% to $3.34 a gallon from a year ago — could fall a bit more ahead of Turkey Day-related trekking.