The US shale output is set for the first monthly decline next month since May, Reuters reported citing the US Energy Information Administration (EIA) monthly productivity report. In October, the production from seven major shale formations will drop by 68,000bpd to 7.64 million bpd. This comes when oil prices are still 40% down from the levels seen at the beginning of this year due to ongoing Covid-19 pandemic.
US oil company Chevron has reportedly trimmed its workforce in Venezuela as part of a global restructuring process. Sources told Reuters that the company has sacked around 20 employees. Chevron initiated the restructuring after the historic fall in crude prices. The process is expected to reduce the company’s headcount by 10-15%.
The Organization of the Petroleum Exporting Countries (OPEC) has revised its global oil demand forecast as Covid-19 crisis continues to impact consumption. In a monthly report, the oil cartel said that oil demand will fall by 9.46 million bpd this year, much higher than 9.06 million bpd decline predicted a month ago. It also said that the recovery will also slower than expected earlier.