The United States Energy Information Administration, EIA, on Wednesday, September 7, said it had increased its 2017 U.S. crude output forecast to 8.51million from previous month’s estimate of 8.31 million.
This, according to the EIA, is based on “an assumption of higher drilling activity, rig efficiency, and well-level productivity than assumed in previous forecasts.”
Needless to say, any higher oil prices will only send US oil production, much of which is now hedged, higher. OPEC appears to be realising this.
Overnight the WSJ wrote that OPEC delegates say they’re concerned that prices over $60 could result in a new surge of U.S. production.
Shale producers need prices above $60 to launch significant new production, Swiss oil consultant Olivier Jakob wrote in a note Tuesday.
