U.S. oil output unexpectedly rose in July, but not where it matters most. After falling between April and June, output rose 1% from June to July, according to Energy Information Administration data released Wednesday. The increase was due to higher output from offshore production in the Gulf of Mexico. Meanwhile, production in the all-important shale-producing states of Texas and North Dakota fell month-over-month. The Gulf of Mexico used to be a major region for domestic oil output, but it has been overshadowed in recent years by new technologies that enabled producers to access oil trapped in shale rocks. Production also slowed following the 2010 Deepwater Horizon explosion and oil spill. But new projects started last year have boosted the region’s output. Analysts say the prevailing narrative that shale production is declining due to sharp cutbacks in new drilling still holds true. The July increase is likely to be a […]