U.S. oil prices continued to climb above $84, and U.S. oil supply remained unbalanced

During the European session on Monday (November 1), the short-term US crude oil price continued its previous strong upward momentum
.
Among them, the price of US crude oil broke through the key $84 mark upward
.

The analysis pointed out that the current oil price is still above $
80 per barrel.
That's why
gasoline prices are at their highest level since 2014.
However, there is a good explanation
for this.
In January 2020, just before the pandemic began to sweep the United States, domestic oil production was 12.
8 million barrels per day (BPD).

Despite the double whammy of a price war between Saudi Arabia and Russia, and the growing demand disruption caused by the pandemic, production has remained at that level for
months.

But things have changed
.
Oil prices eventually fell to zero and then continued to rise
.
That forced some producers into bankruptcy, leading to the largest short-term decline in oil production in U.
S.
history
.

The collapse in oil prices forced many producers into bankruptcy, causing the largest short-term decline in oil production in history
.
Production fell all the way to 9.
7 million b/d in May 2020, the month after oil prices fell, but has since recovered to 11.
3 million b/d
.

Meanwhile, U.
S
.
oil demand has recovered to more than 21.
8 million b/d, levels seen before the pandemic-induced plunge.
Supply loss and demand recovery are the biggest reasons we have $80/b of oil today, compared to just $60/b
before the pandemic.

The reduction in supply caused the United States to lose its short-lived status
as a net exporter of oil and petroleum products.
This figure has fallen from a high import of 13 million b/d in 2005 to more than 1 million b/d of exports in 2020
.
The United States has now returned to its status as a net importer, with a net average of 1.
3 million b/d
over the past four weeks.

But there are some indications that in January 2020, there were nearly 700 oil rigs in the United States, and by the summer of 2020, that number had dropped below
200.
Over the past year, the rig count has steadily rebounded to 445 – the highest level
since the pandemic began.

On the downside, it will take at least a few months for new drilling activity to translate into oil production
.