US shale production has dropped, increasing global demand.

Sky rocketing oil production in the United States has finally ended, which has eased the overstocked global market and driven a rebound in the prices of crude from below $50 per barrel, according to hedge fund manager and crude trader Andrew J. Hall. “We have been able to reach a turning point,” said Hall in his letter to investors of Astenbeck Capital Management LLC on Friday. The supply pullbacks and growing demand proved “doomsday” forecasters wrong and the market is starting to look more positive.

The production of oil from North Dakota to Texas had peaked at almost 10 million barrels per day during February and it has started to fall gradually since then, Hall added. There has been a serious decrease in numbers of drilling rigs and this is starting to shrink the United States oil output, Hall cited data from the US government. This has helped drive a 36% increase in prices over the last six weeks. Analysts predict that the prices will continue to rise because the producers will have more problems ramping up production than cutting back, stated Hall in his letter. The drop in crude prices has also increased demand with consumers purchasing less fuel efficient vehicles.

The United States benchmark crude West Texas Intermediate has settled at $59.15 per barrel on Friday, showing a 3% increase during the week. The price fell by 33 cents during Monday to a $58.82 total per barrel. The funds of Astenbeck have risen by over 10 % during April, and have gained more than 10% during the whole of 2014 even when oil prices have fallen by more than half, according to sources close to the company who didn’t want to be identified. The EIA predicted that the oil output from key shale providers will start to decline during April. The total daily average United States production is expected to peak this year during the second quarter, but it will fall in the third quarter by 210,000 barrels, said the agency in their report from last month.

Hall, who stated earlier this year that he plans to invest in the shares of United States shale producers, thinking they would rally, now says that it is best to invest in oil. Other analysts have different interpretations and many of them are skeptical about how long this trend will go on.