U.S. producers, pumping crude at the highest rate in more than three decades, may increase output further as costs decline almost as fast as oil prices, according to Goldman Sachs Group Inc. The slump in benchmark U.S. futures, down more than 40 percent this year, is driving producers to move drill rigs to lower-cost fields, Goldman said in a note e-mailed today. While there is evidence of some rebalancing starting to occur in the market, it’s far from sufficient, according to Goldman. “Costs are falling nearly as fast as the price, which means oil producers can spend less to get the same or potentially even more in terms of production,” Goldman said. “While reductions in capex are coming faster than expected, it is unlikely to translate into less supply” it said, adding drill-rig rates have dropped as much as 20 percent. ConocoPhillips, the third-largest U.S. energy producer, cut its […]