Now here’s an interesting chart for anyone dabbling in the crude market.
From Citi Research, it shows the bank’s estimates for US shale oil production based on specific sustained price levels for WTI crude over the next five years.
As you would expect, the higher the price, the more production is likely, and vice versa.
Currently, the US Energy Information Administration (EIA) believes that total US crude production will rise to 9.35 million barrels per day (mb/d) this year before lifting to 9.91mb/d in 2018.
The EIA is forecasting that WTI crude will average $49 a barrel this year and $50 a barrel in 2018, according to its latest short-term energy outlook.