RE:RE:US production flatlined at 13.1 mbd last 11 weeks.uwebb429 wrote: Anyone in the oil business knows that production is never flat. Production from new wells and wells that have been worked over produce additional barrels while older wells continuously decline soon after they are first drilled. For these two very different random variables to be exactly equal for an 11 week period goes beyond a little suspicious.
I am generally not a believer in most conspiracy theories but when it comes to U.S. oil production data, I will never trust any of the numbers that are released.
https://ycharts.com/indicators/us_crude_oil_field_production The good news is that OPEC+ has moved their June meeting from June 1st to June 2nd. It will be a virtual meeting instead of the in person meeting that they had originally planned.
I think this is a sign that OPEC+ were able to reach an agreement and will be maintaining the same production cuts into the future. Flooding the market with additioinal barrels at this time would make no sense. No need to meet in person if they plan to leave production the same. This should be bullish for the price of oil this summer. Time to load up on undervalued oil stocks like BTE.
Whether one believes this data or not, the narrative at the end of last year and early this year was that production from the US was to grow from the 13.3 mbd record set last year that apparently nobody saw coming.
So if the narrative writers are currently showing flat production it is contrary to the earlier narrative of increasing production this year.
They are showing production fell from the record high and is flatlining now at 13.1 mbd.
Who knows which direction US production actually goes if these numbers are all contrived but it does illustrate something about the conflicting narratives so far.
OPEC plus will certainly have a finger on the pulse of production trends and that would ulitmately provide the confidence and resolve to continue the current level of cuts to year end.
The bogeyman of market share loss is tempered through this flatlining ........ that's how I see it anyway.