NEW YORK: US crude oil output from seven major shale formations is expected to decline by about 56,000 barrels per day (bpd) in August to about 7.49 million bpd, the lowest in the two years, the US Energy Information Administration said in a monthly forecast on Monday.
The biggest decline is forecast for the Eagle Ford, where output is expected to slide by about 23,000 bpd to 1.1 million bpd, the lowest level since August 2017.
In the Permian basin of Texas and New Mexico, production is expected to fall for the fifth straight month, easing by about 13,000 bpd to 4.15 million bpd, the lowest since March 2019, the data showed.
US producers have slashed spending and curtailed new drilling as oil prices collapsed this year after the coronavirus pandemic eroded global fuel demand.
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