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US drillers have been bringing oil rigs back online in response to stabilising crude prices and the Energy Information Administration now estimates that US crude production will climb by 80,000 barrels a day next month.
The Energy Information Administration said in its monthly drilling productivity report on Monday that output would climb to 4.87m bpd next month, from 4.793m barrels in February. Its estimates for the current month were also revised upwards from 4.748m barrels previously.
The report showed that the Permian basin of western Texas and eastern New Mexico is likely to continue pumping out the most crude, with output expected to rise by 70,000 barrels per day to 2.25m bpd next month. Oil production is also projected to rise in the Eagle Ford basin, the Marcellus formation and the Niobrara formation.
Meanwhile, the shale area of Bakken in North Dakota is expected to see production slide by 18,000 barrels to 976,000 bpd, from 994,000 bpd in February. Output is also expected to slow at the Utica Shale of Ohio. And after
The EIA’s report arrived on the same day that Saudi-Arabia led Opec said it had cut oil output by 1.1m bpd in January. The 13-member cartel and certain non-members including Russia agreed to curb production by 1.2m bpd at the end of last year in an effort to bolster crude prices.
US drillers however appear to have taken advantage of the steadying in oil prices and brought 117 oil rigs back online since the beginning of December, adding rigs in ten of the past 11 weeks, according to oilfield services provider Baker Hughes.