Small US shale oil producers slow drilling amid falling prices

The decline in oil prices to multi-year lows, coupled with high import tariffs, has caused a slowdown in shale oil drilling by small companies in the United States. According to Reuters, this could hinder future growth in the country's energy production, despite earlier forecasts of record output this year.

Bill Daugherty, co-founder of an independent oil producer Blackridge Resources, said his firm will reduce drilling until there is clarity on tariffs, prices, and the dynamics of demand for crude.

Dan Doyle, owner of a small operator Arena Resources, criticized some members of the Trump administration for suggesting that $50 is an acceptable oil price. He argues that even at $60, producers will not turn a profit.

Meanwhile, the US Energy Information Administration lowered its forecast for daily oil production growth this year by 100,000 to 300,000 barrels. Meanwhile, the International Energy Agency reduced its forecast for growth in US crude supply by 150,000 to 490,000 barrels per day. The organization also anticipates a slowdown in global oil demand increase to a five-year low.