US Crude Oil Production Sees Initial Monthly Decline Since April, Notes EIA Report

According to the U.S. Energy Information Administration (EIA), U.S. crude oil output experienced a slight decline in October, marking its first monthly decrease since April. The analysts had anticipated this slowdown in oil production after record-high levels were achieved in August and September. The reduction in U.S. output may help alleviate concerns about oversupply that have been impacting crude prices in recent months. However, it is important to note that the decline in production, which amounted to just 4,000 barrels per day (bpd), suggests that there is still potential for further growth in U.S. production. Energy market expert Anas Alhajji, based in Dallas, stated that those who were predicting that U.S. shale production had peaked would be surprised by this increase in crude production in all tight plays, with the exception of North Dakota. In October, North Dakota saw its crude output fall by 2.4% to 1.27 million bpd, marking its first monthly decline since March. Among other major production areas, the Federal Offshore Gulf of Mexico region experienced a 2% drop in output in October, as indicated by the EIA’s data. However, most other significant production centers witnessed an improvement in output. Texas, the leading oil-producing state, achieved a 0.4% rise in output, reaching a record high of 5.61 million bpd in October, according to the EIA. Additionally, neighboring New Mexico experienced an 0.8% increase in output, reaching 1.84 million bpd. On Tuesday, the EIA revised its September estimates for total U.S. oil output to 13.252 million bpd from the previously reported 13.236 million bpd. Meanwhile, gross natural gas production in the Lower 48 states of the U.S. remained relatively unchanged in October, standing at 116.63 billion cubic feet per day (bcfd) compared to the record high of 116.71 bcfd achieved in September, as per the EIA’s monthly 914 production report. In the top gas-producing states, Texas marked a new record for the fourth consecutive month in October, with output increasing by 0.1% to 34.67 bcfd. Similarly, in Pennsylvania, production rose by 0.6% to 20.68 bcfd.