Why U.S. oil production isn't done rising (MarketWatch)

Myra P. Saefong / MarketWatch

The oil market got another dose of data Monday that pointed to the likelihood of further gains in U.S. crude-oil production.

Oil production from seven major U.S. shale plays is forecast to climb by 124,000 barrels a day to 5.193 million barrels a day in May from April, according to a monthly report on drilling productivity from the Energy Information Administration released Monday .

The agency has forecast increases in shale-oil output every month this year so far.

Oil output from the Permian Basin, which covers parts of western Texas and southeastern New Mexico, is expected to see the largest climb among the big shale plays, with an increase of 76,000 barrels a day, the EIA report said.

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