US oil production down 20%
Oil production in the United States fell from peak levels in March by 20%, the Financial Times reported, citing data from consulting firm Wood Mackenzie. The volume of production cuts is equal to the agreed cut for Saudi Arabia and Russia under the OPEC + deal.
According to Genscape, a subsidiary of Wood Mackenzie, as of May 20, crude oil production in the United States fell by 2.3 million barrels per day from the highest March level of 13.24 million barrels. Also Wednesday, the US Department of Energy announced that in just one week, production had been reduced by 100,000 barrels per day to 11.5 million barrels.
Last year, the United States pumped an average of 12.23 million barrels per day. In January 2020, the amount increased to 12.746 million barrels per day, and in February to 12.833 million barrels.
The US Department of Energy estimates that production will drop to 11.69 million barrels per day, and next year – to 10.9 million barrels.
The OPEC + deal, concluded in April, envisages a reduction in yields in May and June by 9.7 million barrels per day, by 7.7 million barrels in the second half of the year and by 5.8 million barrels per day until the end. in April 2022. The basis for the reduction of yields is October 2018, and for Russia and Saudi Arabia the amount of 11 million barrels per day is indicated. At the end of the term, these two countries should reduce their yields to levels of 8.993 million barrels per day.