Massive Fall in US OutputUS Field Production fell from 8,622,000 to 8,428,000 bpd over the most recent reported week - week to the 1st July - that is almost a 200,000 drop in one week. This 1 week drop alone would reduce the US oil inventory, all other things being equal, by c1.4M barrels over the course of a week, every week that is.
The cumulative impact of these production falls will rapidly reduce the US inventory. Don't expect the oil price to respond immediately, there is too much thinking required in the above two sentences for 90% of paid analysts to get their heads around, thinking was never their thing.
This weekly fall equates to anout 20% of the US production fall over the previous year, which is remarkable. I certainly don't US production falls of this level to be replicated every week going forward, this weekly production drop is probably an outlier to some extent but the drop off in US output is clearly accelerating, we should be in clear supply deficit well before the end of the year now.
Doug