NEW YORK: US 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 US 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.

US 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.

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.