Oil production from seven major U.S. shale plays is forecast to climb by 2,000 barrels a day to 4.542 million barrels a day in January from December, according to a monthly report from the Energy Information Administration released Monday. Oil output at the Eagle Ford shale play in South Texas is expected to see the largest oil output decline at 23,000 barrels a day. However, output from the Permian Basin, which covers parts of western Texas and southeastern New Mexico, is expected to climb by 37,000 barrels a day. January West Texas Intermediate oil settled at $52.83 a barrel, up $1.33, or 2.6%, on the New York Mercantile Exchange, buoyed by an agreement among major oil producers to cut back output starting Jan. 1.
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