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US oil production is projected to shrink by 300,000 barrels per day (bpd) between May and June 2020.
The proposed cut is attributed to a variety of reasons such as the Covid-19 pandemic, the subsequent drop in oil prices and demand and well closures.
In a recent report, Norwegian research company Rystad Energy stated that shale producers will likely reduce the frequency of new oil wells to be launched to balance out the drop in demand.
Additionally, some operational wells are also likely to be shut down as a result of the reduced production.
The projected cut for the months of May and June is significantly higher than the 100,000bpd reduction implemented in April.
