Production Cut

Here's a chart you might find interesting, especially if you follow oil and are an investor.

 
US crude oil production looks set to slow sharply over the coming months, and that should keep prices well supported in the second half of the year.

That’s the view of Daniel Hynes, senior commodity strategist at ANZ Bank, who points to a reduced number of active drilling rigs, along with the prospect of heightened financial stress in the energy sector, as two factors suggesting output will fall “significantly”.

“Active or new drill rigs in the US have fallen from 1,600 to 316 (in May), the lowest level since September 2009,” says Hynes.

He believes that “this is only just being translated into a fall in US oil production”, adding “we believe the rate of falls in weekly US oil production is about to accelerate as the impact of the falling rig count will be compounded by forced closures and low prices biting.”
The chart above, supplied by Hynes, does nothing to undermine this view, demonstrating the lag effect US output has on changes in new and active drilling rigs in production.
 businessinsider.com/image/575114c952bcd023008c6ad9-680/us-crude-production-v-rig