Domestic oil production reached a 2021 high last week as demand waned in the face of lofty prices, the U.S. Energy Information Administration (EIA) said Wednesday.

Production for the week ended Nov. 26 rose to 11.6 million b/d, up 100,000 b/d from the prior week and far ahead of the 11.1 million b/d a year earlier. Output has climbed in recent weeks after a run-up in oil prices earlier in the fall and calls for more supplies to balance the market in the wake of strong demand for travel fuels over the summer.

Demand, however, has been uneven this fall because gasoline costs surged. Prices at the pump hit seven-year highs in November, according to AAA, curbing consumption. Overall demand for the latest EIA period dropped 7% week/week, with gasoline consumption down 6% despite...