Hedging Rush In U.S. Shale Could Send Prices Tanking

14 Jun 2017   Shale Oil

The U.S. shale industry could add yet another dose of new supply in July, with the EIA projecting production growth of about 127,000 barrels per day month-on-month. The fact that shale output is still growing at a rapid clip should raise some concerns about the trajectory of the “rebalancing” process. The gains expected in July will come largely from the Permian Basin (+65,000 bpd) and the Eagle Ford (+43,000 bpd). While total figures are still uncertain, the production gains could put total U.S. output close to 9.4 mb/d in the relatively near future, only a few hundred thousand barrels shy of the all-time high. (Click to enlarge) Surging output would come even as oil prices have faltered recently, a worrying sign that shale drillers are going to continue to ramp up even if the market softens. There are a few interesting trends to watch that could contribute to even […]

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