OPEC Sees U.S. Oil Output Falling for First Time in Eight Years
- U.S. crude output peaked at 9.6 million barrels a day in April
- Price drop, lower spending responsible of output drop: OPEC
The Permian Basin in Mentone, Texas.
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U.S. oil production is projected to decrease in 2016 for the first time in eight years, according to OPEC.
Total output of crude and natural gas liquids is forecast to fall 0.5 percent to 12.47 million barrels a day next year, the Organization of Petroleum Exporting Countries said in its monthly market report Monday. The decline is being driven by the fall in prices, which has curbed spending, OPEC said. U.S. oil drillers have idled more than half the nation’s rigs since last October, data from oilfield-services company Baker Hughes Inc. shows.