(John Kemp is a Reuters market analyst. The views expressed are his own)
LONDON – Oil production from major U.S. shale plays will decline by almost 60,000 barrels per day between April and May according to new estimates from the Energy Information Administration.
Production is expected to decline in the Bakken, Niobrara and Eagle Ford plays next month. Only the Permian Basin is expected to post a small month-on-month increase in output (“Drilling Productivity Report” Apr 2015).
With the number of rigs drilling for oil in the United States down by almost 53 percent in just six months, according to oilfield services company Baker Hughes, the shale boom appears to be approaching a turning point.
The crude market remains substantially oversupplied as a result of past production, but the degree of excess supply should narrow in the coming months.
The attached chartbook presents a selection of contemporary indicators for supply, demand, stocks and prices, including spreads, in the U.S. oil market. To view the chartbook, click here.
(Editing by Jason Neely)
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