US Crude Oil Production Recovers But Output Losses May Linger

US oil production has seen some recovery since late last week although production at North Dakota may need at least a month to restore normal output according to state officials.

• North Dakota’s oil production was down around 350-400k b/d as of Friday due to the recent cold weather impacting operations, according to the pipeline authority. This compares with peak production losses at around 700k b/d earlier in the week.
• Production across the US was reduced by around 10mn barrels last week, market participants told Bloomberg. Production losses in the Permian Basin of Texas and New Mexico are estimated at around 6mn barrels and shut-in output in North Dakota’s Bakken is seen at close to 3.5mn barrels, the sources added.
• The production lass was at less than 1% of the total crude output as of Friday but they are expected to linger or even rise in North Dakota, the people said.
• In some parts of the US such as the city of Williston, in the Bakken formation, below-freezing temperatures are expected throughout the end of the month, which is further expected to disrupt output. Oil producers there may need at least a month to restore output to normal levels after more than half of the state’s flows were cut off this week, state officials said.