US shale oil output to reach eight-month high in July

Oil

Oil production from the seven top US shale regions is set to increase by 37K b/d m-o-m to 7.8M b/d in July, rising for the second month in a row to the highest level since November 2020, according to drilling productivity reports published by the US Energy Information Administration (EIA). Output from the Permian Basin, which is the largest in the US and spans across Texas and New Mexico, is expected to jump by 56K b/d m-o-m to the highest level since March 2020 at 4.67M b/d, with production from the Appalachia Basin also due to build by 1K b/d m-o-m to 129K b/d. Output from the five other major shale regions is expected to decline however, with the Niobrara Basin located in Colorado decreasing for the eleventh consecutive month by 7K b/d m-o-m to 509K b/d, the lowest level since August 2017.