Market Data
August 3, 2020
SMU Energy Analysis for July
Written by Brett Linton
U.S. production of crude oil decreased in May by 1.99 million barrels per day (b/d), the largest monthly decrease since at least January 1980, according to the latest data from the U.S. Energy Information Administration. May marks the sixth consecutive monthly decrease in crude oil production and is the third month since March when the government declared a national emergency over the COVID-19 outbreak.
May crude oil production decreased by 16.6 percent as the economic impact of COVID-19 mitigation efforts led to a drop in demand. Reduced economic activity has caused changes in energy supply and demand patterns. Crude oil producers curtailed production and reduced drilling activity, lowering the output for the major U.S. oil-producing regions. The benchmark West Texas Intermediate (WTI) crude oil average spot price dropped from $58 dollars per barrel (b) in January 2020 to $17/b in April. However, WTI increased to $29/b in May as production decreased and demand increased.
