Production numbers are expected to figure prominently into oil prices again this year. There are expectations that U.S. shale production could grow by 1.2 million barrels per day this year, but if that number is missed it could act as a de facto production cut, potentially helping oil prices along the way.
“OPEC posted its biggest drop in output in December in nearly two years, according to Reuters. Production dropped by 460,000 barrels per day last month, the steepest decline since January 2017,” according to CNBC.
While USO has traded higher to start 2019, the fund remains 25% below its 200-day moving average.
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