The adjustment in US oil production is well underway but the reaction in futures markets has far been muted. Partly that is because much of the actual data on production is available only with a lengthy delay (accurate national figures are available only up to June and show only a relatively marginal drop in output at that point). Partly it is because the market has focused on production from North Dakota which publishes the most high-frequency data but where output has been more resilient than in other parts of the country. And partly it is because many traders and hedge fund managers still dispute whether output is declining as much as the EIA estimates and are waiting for stronger evidence before changing their bearish stance. Bearish traders and investors are focused more on the weekly data on crude stocks rather than monthly production figures.