U.S. oil hits its lowest in 11 days after a government report from the United States showing that shale oil production for May was predicted to announce their largest monthly growth.
U.S. West Texas Intermediate (WTI) crude futures was 24 cents lower at $52.41 per barrel, which is considered their lowest since April 7. International benchmark Brent crude futures dropped about 26 cents to settle at $55.10 per barrel.
The moment when the Organization of the Petroleum Exporting Countries and other producing regions have been attempting to reduce production, the figures from government drilling showed the shale output in the U.S. for next month will jump to 5.79 million barrels per day (bpd). The country’s biggest shale region Permian play was estimated to hit 2.36 million bpd.
An analyst from Vienna’s JBC Energy says the energy Information Administration in the United States expects a combined 124,000 bpd advance in U.S. shale output all throughout May. Reuters suggested that there are more barrels to come from shale fields in the country.
OPEC member from United Arab Emirates says he witnessed a positive rise on oil demand this 2017, however it would take a lot of time to put the market back on track. The energy minister added that the compliance between the organization and other producers was developing and the country was abiding with its deal to reduce production.
All of the nations affiliated with the OPEC are reducing oil production by 1.2 million barrels per day from the beginning of January till the end of June. This is their first cut in over eight years.