(Bloomberg) — Weekly U.S. crude oil production declined for the first time in three months, signaling that soaring costs across the oil fields may be preventing drillers from expanding output.
The decline hits as the oil-consuming nations are scrambling for additional supplies to reduce reliance on Russia and bring down the skyrocketing crude prices. President Joe Biden has urged the industry to raise supply to help battle historically high fuel inflation.
Domestic crude output last week fell 100,000 barrels to 11.8 million barrels a day, after holding steady over the previous three weeks, according to data from the Energy Information Administration. The decline stems from a small drop in Alaskan volumes. Output from the rest of the US, including prolific Permian shale basin, held steady.
In its Short-Term Energy Outlook report this week, the EIA lowered its production forecast through 2023. Drillers have said they are experiencing spiraling prices on everything from rigs and workers to diesel fuel and frac sand.