*With crude prices above $70/B since the start of June, latest US data suggests output is now trending higher having been rangebound at around 11mn b/d (save storm-hit February) since late 2020. Latest weekly figures from the US Energy Information Administration (EIA) have output rising 200,000 b/d to 11.2mn b/d for the week ending 11 June.
*But more granular data from the EIA’s monthly Drilling Productivity Report (DPR) indicates that recent gains have been focused almost exclusively on the Permian basin of west Texas and southeast New Mexico. The latest DPR, published 14 June, had Permian output rising by 39,000 b/d for April and 45,000 b/d for May with gains accelerating to a forecast 52,000 b/d and 56,000 b/d for June and July respectively. This would leave July output at 4.663mn b/d, just 220,000 b/d shy of the record 4.886mn b/d figure hit in March 2020. New Mexico, almost all of whose output is accounted for by the western ‘Delaware Basin’ portion of the Permian, saw record 1.155mn b/d output in March. (CONTINUED - 581 WORDS)
