The chart examines conditions in U.S. crude oil markets, pairing price and cost trends with rig counts and production growth to identify emerging headwinds.

Prices have flattened and become range-bound even as costs rise. Squeezed by these dynamics, rig counts are declining and the growth in domestic production is beginning to flatten.

These indicators point to a slowing in the pace of U.S. crude oil output expansion, a shift with implications for supply outlooks and market balances.

U.S. Crude Oil Production – Potential Headwinds — figure 2
Fig. 2 of 3 · Chart 2023-29 · Source: EPRINC
U.S. Crude Oil Production – Potential Headwinds — figure 3
Fig. 3 of 3 · Chart 2023-29 · Source: EPRINC

From the EPRINC Chart of the Week archive.