Fall in US crude output expected to accelerate

New York

THE drop in US crude production is set to accelerate as investment cutbacks are felt, reducing the chance of a V-shaped recovery in output.

Reports of falling output and plummeting rig counts in the four main shale-producing areas have left "no doubt" that production is falling and likely to fall faster in the months ahead, Paul Horsnell, global head of commodities research at Standard Chartered Plc in London, said in a report. The reduction in US activity and a rebound in prices have probably pleased Saudi Arabian policy makers, he added.