Falling production is underpinning U.S. oil prices: Kemp


U.S. crude oil production is falling sharply, helping put a floor beneath U.S. domestic crude prices and causing them to rise relative to the international marker Brent.

In the face of lower prices, the U.S. oil boom has stalled and the industry is facing the sharpest setback in production for decades, excluding hurricane periods (link.reuters.com/kyj65w).

According to the U.S. Energy Information Administration (EIA), U.S. crude and condensate output peaked at 9.612 million barrels per day (bpd) in April and had declined by 316,000 bpd by June.

Production continued to rise in North Dakota (36,000 bpd) but in most other states and offshore areas output turned down (link.reuters.com/vuj65w).

The largest declines were reported in Texas (129,000 bpd), the Gulf of Mexico (90,000 bpd), West Coast offshore (28,000), Alaska (27,000 bpd) and California (18,000 bpd). (by John Kemp, Reuters)