U.S. Oil Output Records First Monthly Drop Since April, Easing Oversupply Concerns
(Reuters) — U.S. crude oil output fell slightly in October to 13.248 million barrels per day, the first monthly decline since April, the U.S. Energy Information Administration (EIA) said on Dec. 29.
Analysts have been expecting a slowdown in U.S. oil output after it set monthly records in August and September. Falling U.S. output could help ease some oversupply concerns that have weighed on crude prices in recent months.
However, the small magnitude of that decline - just 4,000 barrels per day (bpd) - likely shows that U.S. production might still have room to grow.
"Those who have been preaching for months that US shale production has peaked are in for another surprise: Crude production increased in all tight plays except in North Dakota," Anas Alhajji, an energy market expert based in Dallas, wrote on Friday.
North Dakota, the third-largest oil-producing U.S. state, saw its crude output fall 2.4% to 1.27 million bpd in October, the first monthly decline since March.
Output from the Federal Offshore Gulf of Mexico region fell 2% in October, EIA data showed. However, most other major production hubs saw output improve.
Top oil-producing state Texas saw output rise by 0.4% to a record high of 5.61 million bpd in October, EIA said. Output in neighboring New Mexico rose 0.8% in October to 1.84 million bpd.
The EIA on Tuesday revised its estimates of total U.S. oil output in September to 13.252 million bpd from 13.236 million bpd reported last month.
Gross natural gas production in the U.S. Lower 48 states was virtually unchanged at 116.63 billion cubic feet per day (Bcf/d) in October, compared to the record high 116.71 Bcf/d in September, according to EIA's monthly 914 production report.
In top gas-producing states, output hit a new record for the fourth straight month in Texas in October, climbing 0.1% to 34.67 Bcf/d. In Pennsylvania, production rose 0.6% to 20.68 Bcf/d.
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