Nearly all of the curtailed U.S. onshore oil volumes shut-in as Covid-19 hampered demand are set to return by the end of the third quarter amid stronger oil prices and a generally brighter market outlook, according to a new analysis by Rystad Energy.

Curtailment Activation Schedule

The Oslo-based consultancy analyzed the curtailment reactivation schedules of 25 publicly traded oil operators using their second quarter earnings statements. Researchers found that total net curtailments peaked at 772,500 b/d in May, before dropping to 680,300 b/d in June and 306,500 b/d in July.

The curtailed volumes are scheduled to decline to 73,300 b/d in August, with nearly all production poised to be reactivated by September.

“The cuts monitored in the sample group were implemented mostly in April and May, and were...