U.S. crude oil production climbed to a record 13.934 million barrels per day in April 2026, the highest monthly production rate ever recorded, according to data released by the U.S. Energy Information Administration. The new record surpassed March’s 13.718 million bpd by 216,000 barrels, as producers responded to the oil price spike triggered by the Iran war and the closure of the Strait of Hormuz.
The Permian Basin, straddling West Texas and New Mexico, once again did the heavy lifting. Texas boosted output to 5.83 million bpd, its highest level since November, while New Mexico set a new production record at 2.37 million bpd. The monthly figures confirm a genuine surge in production rather than statistical noise in weekly estimates, according to OilPrice.com.
The latest figures exceeded the EIA’s own expectations. In its June Short-Term Energy Outlook, the agency forecast average U.S. crude production of 13.7 million bpd for 2026. April alone came in more than 200,000 bpd above that projection, highlighting how quickly higher prices encouraged additional supply from Texas and other producing states.
While oil prices have since retreated as exports from the Persian Gulf gradually resume, the production record underscores the responsiveness of Texas shale producers to price signals. When crude briefly flirted with $120 per barrel during the Iran crisis, Permian operators ramped up drilling activity to capture the higher margins.
The record output from Texas comes at a pivotal moment for the state’s energy economy. Oil prices have fallen sharply from their wartime highs, with WTI dropping to $68 per barrel on July 2 as the U.S.-Iran ceasefire holds and crude trapped inside the Persian Gulf makes its way to market, as reported by Gulf News.
Goldman Sachs has warned of a potential global oil surplus of approximately 3 million barrels per day in 2027, even accounting for strategic reserve rebuilding. Samantha Dart, co-head of global commodities research at Goldman, told Bloomberg Television that despite over 1 million barrels per day of SPR rebuilding globally, close to 2 million barrels per day of surplus would remain.
For Texas, the production record highlights the state’s continued dominance in U.S. energy output, but the prospect of lower prices and a potential supply glut in 2027 could test the resilience of Permian operators. Many producers have maintained capital discipline in recent years, and the narrow production range seen across major basins suggests a mature industry responding cautiously to price cycles.
The EIA’s weekly estimates had already suggested U.S. production was hovering near record territory, climbing from 13.66 million bpd in late March to more than 13.8 million bpd through June. The monthly confirmation now provides a clearer picture of how Texas and other producing states responded to one of the most significant geopolitical oil price shocks in recent years.
