By May 9, 2017 Read More →

EIA raises 2017 world oil demand growth forecast


The acting administrator for the EIA says increased output from the US, Canada and Brazil will “curb upward pressure on global oil prices through the end of 2018.” Pioneer Natural Resources photo.

EIA: US production to rise to 9.31 million b/d in 2017

Increasing crude output from the United States will likely limit oil prices through the end of 2018, according to the US Energy Information Administration.

The EIA said US crude production is expected to increase this year to 9.31 million barrels per day (b/d) from 8.87 million b/d in 2016, an increase of 440,000 b/d.

Just last month, the EIA forecast a 350,000 b/d year-over-year increase, based on data from its monthly short-term energy outlook.

In 2018, the EIA says US oil output will rise to 9.96 million b/d, with most of that coming from the boost in the 2017 forecasts.  The EIA’s growth forecast for 2018 is 650,000 b/d, down from its previous forecast of 680,000 b/d.

The OPEC supply cut pact had originally helped boost oil prices, but that jump in prices also encouraged US shale producers to increase production to levels not seen since mid-2015.

“Higher oil production from the United States, along with rising oil output from Canada and Brazil, is expected to curb upward pressure on global oil prices through the end of 2018,” EIA Acting Administrator Howard Gruenspecht said in a statement.

Analysts warn that increased production from the US, Canada and Brazil could continue to undermine efforts to boost prices.  US shale production in the US is expected to rise to 5.19 million b/d this month, according to the EIA.

“It’s pretty apparent that any sustained rise back above $55 will get more and more shale online,” John Kilduff, a partner at energy hedge fund Again Capital LLC told Reuters.


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