(WO) – Diamondback Energy, Inc. is moving to increase production in response to tightening global oil markets, citing a sharp shift from surplus to deficit driven by recent supply disruptions.
In a letter to stockholders, the company said the oil market has “completely flipped from a projected supply-demand surplus to a historic global deficit,” with global production down more than 8 MMbpd in March and further declines in April.
“Prices for physical delivery of crude oil and refined products have increased even further, with some regions around the world already seeing shortages,” the company said, adding that the imbalance is “the catalyst to begin to grow production.”
Diamondback said it is “bringing incremental barrels to the market immediately,” primarily by working down its drilled but uncompleted well (DUC) inventory to maintain production above 520,000 bopd—about 3% above its original 2026 guidance.
To support the increase, the company plans to run five completion crews for the remainder of the year and add two to three rigs to sustain future activity and preserve operational flexibility.
The move positions Diamondback among the U.S. shale producers responding to higher prices and supply disruptions tied to Middle East tensions, as operators weigh capital discipline against the opportunity to capture stronger market fundamentals.
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