Oil Predictions for 2016

The EIA reported on January 21st that weekly crude oil production in the U.S. rose by 8,000 bopd to 9.24 million barrels per day. In 2015 the monthly average was 9.6 MMbpd. Currently weekly U.S. crude oil production is 0.53% more than this time last year, and the four week average is 0.7% more than 2014 levels. Overall U.S. crude oil production has fallen only 4% from peak levels. For 2016 U. S. crude oil production is expected to remain above 9 MMbpd. Despite record low oil prices, oil production will be maintained by “strategic planning, cost cutting, optimizing resources, and idling high-cost rigs.”