The growing concern is that rising Non-Opec output, led by the US is increasingly offsetting the reduced Opec production. Official Opec data suggested that Opec cut oil output in April by more than pledged. The revisions have been largely prompted due the fast rebounding shale oil production in the US. Weekly data from EIA shows that total US oil production is comfortably above 9.3 million bpd.EIA forecasts show that US shale oil production is expected to rise further in May. The EIA drilling productivity report showed that shale oil output will likely increase by 123,000 bpd in May to 5.19 mbpd, biggest jump in two years.

Source: Economic Times May 16, 2017 13:52 UTC