US Crude Oil Production Fell for the First Time since February

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The EIA (U.S. Energy Information Administration) reported that US crude oil production fell by 9,000 bpd (barrels per day) to 9,305,000 bpd on May 5–12, 2017. Production fell 0.1% week-over-week, but rose 5.8% year-over-year. US crude oil production fell for the first time since February 10, 2017. However, production is near the highest level since August 21, 2015. The rise in US crude oil production pressured crude oil prices. As a result, US crude oil (ERY) (ERX) (XES) prices are down 13.3% YTD (year-to-date).

Lower crude oil prices have a negative impact on oil and gas producers’ earnings like Comstock Resources (CRK), Northern Oil & Gas (NOG), Devon Energy (DVN), and Triangle Petroleum (TPLM). For more on crude oil prices, read Part 1 of this series.

US crude oil production peaked at 9,600,000 bpd (barrels per day) in June 2015. On the other hand, it hit a low of 8,428,000 bpd for the week ending July 1, 2016—the lowest level since June 2014. Since then, US crude oil production has risen ~10.3%.

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