On Wednesday, the US Energy Information Administration (EIA) expected the country’s crude oil output to fall deeper than its previous forecast.
This year, US crude production is likely to dip by 260,000 bpd to 11.02 million bpd but in 2022 it would likely bounce back to 11.73 million bpd. Previously, the EIA predicted the output to only fall by 200,000 bpd for 2021.
For the third and fourth quarters of this year, the agency also cut the output forecast.
Since the pandemic breaks out, US crude output has diminished along with demand and has not yet returned to the record level seen just before the pandemic at 12.966 million bpd of November 2019.
Regarding consumption, the EIA also lessened the outlook for demand this year to 1.48 million bpd from last month’s prediction of 1.55 million bpd. For next year, the consumption growth forecast was also cut to 760,000 bpd from last month’s 890,000 bpd.
Looking forward, US consumers will spend more money on heating amid the high energy prices this winter, the EIA projected in its Winter Fuels Outlook.
