U.S. shale production is set to snap a five-month decline in January, the U.S. government said on Monday, a move that comes just days after OPEC and rival producers agreed to reduce crude output in an effort to boost prices.
The month-on-month increase in production would be the first since July and the second rise in a year, according to the U.S. Energy Information Administration’s drilling productivity report.
In the Permian Basin of West Texas, output is projected to rise by 37,000 bpd to 2.13 million bpd, the data showed.
North Dakota’s Bakken oil production was set to drop by 13,000 bpd to 906,000 bpd. Eagle Ford output in South Texas was set to drop by 23,000 bpd to 980,000 bpd.
On Saturday, members of the Organization of the Petroleum Exporting Countries and rival producers agreed to cut global output in their first such deal since 2001. As part of the deal, non-OPEC producers would scale back output by 558,000 bpd. read full story….