The EIA is out with its latest productivity report and production in shale regions is seen down 1k bpd after a 2k bpd drop in December. The Permian continues to lead the way with back-to-back monthly rises near 5k.
The oil market will be carefully watching the US this year and the possibility of further oil production increases. At some point, if the US is going to keep the global market fully supplied, the OPEC will have to decide if it wants to try and battle for market share. The problem is that oil companies have significantly better balance sheets today than in 2020. It should all conspire to keep oil below $100, which is what Goldman Sachs wrote about today.
WTI has faded a bit today from a high of $74.26 but remains up $1.20. Here's a look at the monthly chart:
