Gordon Kristopher / Market Realistic
The EIA (U.S. Energy Information Administration) reported that monthly US crude oil production fell by 91,000 bpd (barrels per day) to 8.8 MMbpd (million barrels per day) in December 2016—compared to the previous month. Production fell 1.1% month-over-month and 4.8% year-over-year. The fall in US crude oil production could support crude oil prices. For more on crude oil prices, read Part 1 of the series.
US crude oil production peaked at 9.6 MMbpd in April 2015. In September 2016, production hit 8.6 MMbpd—the lowest monthly level since March 2014. Lower crude oil prices, higher break-even costs, and higher production costs for US shale oil producers compared to other oil producers led to the fall in US crude oil production.