US Crude output to decline as prices remain soft – Commerzbank

💡 DMK Insight

US crude production is projected to plateau at 13.6 million bpd, but here’s why that matters now: A forecasted decline in drilling activity due to low oil prices could signal tighter supply in the near term. Traders should keep an eye on how this impacts WTI and Brent prices, especially if production dips below expectations. If we see a significant drop in output, it could lead to a supply shock, pushing prices higher. Watch for technical levels around $70 for WTI; a breach could trigger bullish sentiment. Conversely, if prices remain low, we might see further cuts in production, which could create a ripple effect across energy stocks and related commodities. The market’s reaction to these forecasts will be crucial, especially with OPEC’s potential influence on global supply dynamics. But don’t overlook the flip side—if prices recover, we might see a rebound in drilling, which could counteract any bullish momentum. Keep an eye on the upcoming EIA reports for real-time adjustments to these forecasts.