By John Kemp | LONDON U.S. crude oil production appears to be rising strongly thanks to increased shale drilling as well as rising offshore output from the Gulf of Mexico. Production averaged almost 9 million barrels per day (bpd) in the four weeks to Feb. 24, according to the latest weekly estimates published by the Energy Information Administration. Production has been on an upward trend since hitting a cyclical low of 8.5 million bpd in September (“Weekly Petroleum Status Report”, EIA, March 1). Weekly production numbers are estimates based on a combination of hard data and modeling so there is some uncertainty around them (“Weekly Petroleum Status Report: Explanatory Notes and Details Methods”, EIA). But the weekly estimates normally provide an accurate indicator for trends in the more comprehensive monthly data (tmsnrt.rs/2mcZphb). The most recent monthly statistics show output declining by 91,000 bpd in December, mostly due to exceptionally cold weather in North Dakota. Even with this weather-driven decline, which is expected to be temporary, production was still 216,000 bpd above the cyclical low reported in September. And the most recently weekly estimates suggest production increased significantly again during January and February. The rise in production is consistent with the
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Source: CTRM Center