U.S. crude output climbed to a record 13.49 million barrels a day in May, U.S. Energy Information Administration data show, surpassing the previous peak set earlier this year and underscoring the strength of shale and offshore drilling even as prices weaken. Texas led the gains, pumping 5.752 million barrels a day—its highest level since November 2024—while production from federal waters in the Gulf of Mexico rose to 1.85 million barrels a day, the most since December. The growth adds to a surge in non-OPEC supply, with Brazil’s oil output reaching an all-time high of 3.757 million barrels a day in June, according to the country’s ANP regulator. The fresh wave of barrels comes as OPEC and its allies weigh a further collective increase of roughly 548,000 barrels a day that could take effect in September, a move expected to be discussed at the group’s 3 August meeting. Traders say the prospect of additional supply is eroding confidence that the producer alliance can balance the market in the second half of the year. Benchmark prices extended losses on the news. West Texas Intermediate slipped $1.53 to $67.73 a barrel and Brent dropped $0.88 to $70.82 in early New York trade on Friday, taking both contracts near four-year lows. Analysts warn that, barring a rebound in demand, the market could tip into a surplus of up to 2 million barrels a day by the fourth quarter.