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15 Jan 2015
US oil production rose the highest in at least 32 years - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that the EIA continues to project higher production, even as the price has fall.
Key Quotes:
"The World Bank cut is world growth forecasts for this year and next earlier this week."
"US oil production rose by about 60k barrels a day last week to 9.19 mln barrels a day. This is the highest in at least 32 years. EIA estimates US oil output will average 9.31 mln barrels a day, up from 8.67 mln a day average last year. Output next year is expected to average 9.53 mln barrels a day."
"This forecast seems to be at some risk of being revised lower. However, there is an important lag here. Some new wells are only now being exploited. Shale production, which accounts for about a third of US output typically have short lives than conventional production. Capital budgets are being cut, and this will impact futures exploration and development. "
Key Quotes:
"The World Bank cut is world growth forecasts for this year and next earlier this week."
"US oil production rose by about 60k barrels a day last week to 9.19 mln barrels a day. This is the highest in at least 32 years. EIA estimates US oil output will average 9.31 mln barrels a day, up from 8.67 mln a day average last year. Output next year is expected to average 9.53 mln barrels a day."
"This forecast seems to be at some risk of being revised lower. However, there is an important lag here. Some new wells are only now being exploited. Shale production, which accounts for about a third of US output typically have short lives than conventional production. Capital budgets are being cut, and this will impact futures exploration and development. "