US crude oil production in September fell to the lowest monthly level since World War II as hurricanes Katrina and Rita disrupted oil output in the Gulf of Mexico.
September oil production averaged 4.197 million barrels per day, the lowest level since July 1943, when 4.117 million bpd was produced, the Energy Information Administration (EIA) said last night.
It was also the first time monthly output fell below five million bpd since April 1950, the agency said.
At one point, during the last week of September, 100 per cent of US oil output in the Gulf of Mexico, which normally averages around 1.5 million bpd, was shut in by the hurricanes.
About 69 per cent, or just over 1 million bpd, in offshore oil production was still off line as of yesterday, the Interior Department said.
But the EIA, the Energy Department's analytical arm, said it expected total domestic oil production to increase in the coming months as companies resume their offshore operations.
Oil dipped below $63 a barrel this morning after signs of flagging demand from the United States turned the tide on this week's brief rally.
US data yesterday showed demand for gasoline and distillates stuck below year-ago levels, offsetting earlier forecasts for a rebound in consumption next year that could keep overworked producers and refiners straining.