Via Bloomberg
Bloomberg out with a piece citing that high US production levels are due to keep prices in check. The drilled- but- uncompleted (DUC) wells count had fallen for a fifth month in October as producers draw on the the DUC’s inventory to cut costs and capital outflows. This is how US crude production managed to hit a record high this month even as the rig count fell to its lowest level since March 2017. See chart below:
The rationale is that the ‘drilled-but-uncompleted’ wells cost less to complete than digging a brand new well. So, as US producers complete the DUC backlog it means more supply comes live and this will keep prices capped as producers work through the DUC inventory backlog.