U.S. shale oil output to climb by 38,000 bpd in July -EIA

U.S. oil output from seven major shale formations is expected to rise by about 38,000 barrels per day (bpd) in July to about 7.8 million bpd, the highest since November, the U.S. Energy Information Administration said in a monthly forecast on Monday.

The biggest increase is set to come from the Permian, the top-producing basin in the country, where output is expected to rise by 56,000 bpd to about 4.66 million bpd, the highest since March 2020.

The forecast increase in total output was attributable to the Permian and Appalachia basins, with the other five basins expected to decline, or remain flat, the data showed.

The Eagle Ford basin in South Texas and the Bakken basin in North Dakota and Montana are each expected to register declines of 4,000 bpd.

Output in the Bakken is expected to slide to about 1.1 million bpd, the lowest since July 2020.

U.S. producers have increased drilling activity as oil prices have rebounded to about $70 a barrel. Oil and gas rig counts rose for a 10th straight month in May. RIG/U
Source: Reuters (Reporting by Devika Krishna Kumar in New York Editing by David Goodman and Sonya Hepinstall)

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