U.S. Crude Oil Output Peaked, Diamondback Energy Forecasts 10% Rig Decline Amid OPEC+ Market Share Gain

U.S. crude oil production has peaked, according to multiple sources including Kpler and leading shale producers Diamondback Energy and Coterra Energy. The decline is attributed to a slump in oil prices, tight profit margins, and geological constraints outweighing technological advances. Diamondback Energy's CEO, Travis Stice, described the situation as a tipping point for U.S.

oil production, highlighting that shale output is likely to decline in the coming months. The company has lowered its full-year production forecast and expects onshore oil rigs across the U.S. to decrease by nearly 10% by the end of the second quarter, with further reductions anticipated thereafter. This production peak coincides with a price war led by OPEC+, which is regaining market share amid the U.S. output decline. Additionally, global oil inventories remain near their five-year lows for now. These developments have prompted major shale producers to cut capital expenditures and reduce drilling activity.