EIA Predicts May Will See Biggest U.S. Oil Production Increase in Two Years
U.S. shale production in May was set for its biggest monthly increase in more than two years, government data showed on Monday, as producers stepped up their drilling activity with oil prices hovering at over $50 a barrel.
May output is set to rise by 123,000 barrels per day to 5.19 million bpd, according to the U.S. Energy Information Administration's drilling productivity report. That would be the biggest monthly increase since February 2015 and the highest monthly production level since November 2015.
In the prolific Permian play located in West Texas and New Mexico, oil production is forecast to rise by nearly 76,000 bpd to 2.36 million bpd, data showed, a new record for the largest U.S. shale play.
In the Eagle Ford region, output is set to rise by 39,000 bpd to 1.22 million bpd, the third monthly increase. Production in the Bakken is forecast to drop 1,400 bpd to 1.02 million bpd, the third consecutive monthly decline.Further, this comes from CNBC:
Oil prices hit their lowest in 11 days on Tuesday on news that U.S. shale oil output in May is expected to post the biggest monthly increase in more than two years, fueling concerns that U.S. production growth is undermining efforts to cut oversupply.
U.S. government drilling data showed shale production next month was set to rise to 5.19 million barrels per day (bpd), with output from the Permian play, the largest U.S. shale region, expected to reach a record 2.36 million bpd.
Global benchmark Brent crude futures were down 49 cents at $54.87 a barrel at 1038 GMT. They touched $54.76 intraday, the lowest since April 7.
U.S. West Texas Intermediate crude futures traded down 46 cents at $52.19 a barrel. Their intraday low was $52.16, also the weakest since April 7.
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