The single biggest question for the oil market in 2024 is whether US producers will stop pumping more

Early signs are encouraging for the bulls

The EIA estimates shale production down 900 bps in February

After a 600 bpd drop in January, these may seem like small decreases, but they could have a significant impact on the oil market. If production remains close to flat, it would be bullish for oil prices. However, it’s important not to read too much into these winter numbers, as they can be influenced by various factors.

The recent freeze-off is expected to further impact production, leading to lower numbers for January. This could potentially have a ripple effect on the oil market, causing prices to increase.

How does this affect me?

As a consumer, you may notice a rise in gas prices if oil production continues to decrease. This could result in higher costs for transportation and everyday goods that rely on oil for production.

How does this affect the world?

If US oil producers significantly reduce their pumping, it could have a global impact on oil prices. This could lead to shifts in the economy, as countries that rely heavily on oil exports may see fluctuations in their markets.

Conclusion

While the decrease in US oil production may seem small, it could have significant implications for the oil market in 2024. Consumers and countries around the world will need to monitor these developments closely to prepare for potential changes in oil prices and global markets.