The United States' crude oil production reached 13 million barrels per day in September, securing its position as the world's largest oil producer.

This year, U.S. crude oil exports have set a new record as the surge in its production has diminished OPEC's dominance in the global crude oil market.

Data released by the U.S. Energy Information Administration (EIA) on Wednesday showed that the average export volume for the first half of 2023 was 3.99 million barrels per day.

This represents a 19% increase from a year ago and is the highest level for the first half of the year since the U.S. crude oil export ban ended in 2015.

U.S. oil production hit a historical high, reaching 13 million barrels per day in September, consolidating its status as the world's largest oil-producing country.

This week, as tensions escalate over the Red Sea attacks, prompting shipping companies to divert vessels from major energy arteries, crude oil prices have risen slightly, but there is still a fear of the first annual decline since 2020.

After U.S. oil production reached a historical high, oil prices gave up some of their gains, with Brent crude oil being capped at the $80 mark and WTI crude oil falling to around $74.

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OPEC+ countries, including Saudi Arabia, have implemented significant production cuts this year in an attempt to stabilize oil prices. Saudi Arabia remains the world's leading oil exporter, with daily exports exceeding 6 million barrels.

However, the influx of oil from the United States has made it more difficult for OPEC+ to dominate the oil market. Moreover, investors do not believe that OPEC+ can tighten the market in the next quarter, despite the organization's decision to extend its supply restrictions.

The cost of OPEC+'s production cuts is that, according to the International Energy Agency (IEA), the substantial oil production from non-OPEC+ members such as the United States, Brazil, and Guyana seems to have filled the gap created by OPEC+'s production cuts, reducing OPEC+'s share of the oil market to its lowest level in nearly a decade.Vishnu Varathan, Head of Economics and Strategy at Mizuho Bank, said:

"The current oil market is particularly tense, especially with market concerns about oversupply. In addition, there is the situation in the Red Sea, record US oil production, and signs of OPEC+ losing control over quota discipline."

Rebecca Babin, Senior Equity Trader at CIBC Private Wealth, believes that "Saudi Arabia no longer exports oil to the market, making room for additional exports from the United States, while at the same time, Russia's oil flow has shifted from Europe, creating opportunities for US oil to flow to Europe."

Energy expert Paul Sankey said earlier this month that Saudi Arabia may engage in a "market share war" with the United States, with the former regaining control over oil prices by supplying large quantities of oil to the market.

But for now, OPEC+ plans to continue reducing production, with a reduction of 2.2 million barrels per day in the first quarter of 2024. On the other hand, the market expects that US production will continue to grow next year, potentially "filling" these gaps.