EIA: US crude out­put may hit 9.96m bar­rels daily in 2018

New Straits Times - - Business / World -

WASH­ING­TON: The En­ergy In­for­ma­tion Ad­min­is­tra­tion (EIA) said do­mes­tic out­put will climb to a record 9.96 mil­lion bar­rels a day (bpd) next year, up from 9.9 mil­lion bar­rels last month, ac­cord­ing to the agency’s monthly Short-Term En­ergy Out­look re­leased on Tues­day.

Pro­duc­tion will av­er­age 9.31 mil­lion bpd this year, up from 9.22 mil­lion pro­jected in April.

United States ex­plor­ers have added rigs this year, par­tially un­der­min­ing oil-pro­duc­tion cuts that started in Jan­uary by Or­gan­i­sa­tion of the Pe­tro­leum Ex­port­ing Coun­tries and 11 other ex­porters. The na­tion’s ac­tive oil­rig count has more than dou­bled in the past year to 703 last week.

The lag be­tween drilling and reach­ing max­i­mum pro­duc­tion sig­nals that out­put will climb fur­ther in com­ing months, ac­cord­ing to the re­port.

“In­creased drilling-rig ac­tiv­ity is ex­pected to boost US crude oil pro­duc­tion this year and next,” said EIA act­ing ad­min­is­tra­tor Howard Gru­en­specht.

West Texas In­ter­me­di­ate crude will av­er­age US$50.68 (RM220) a bar­rel this year ver­sus the April pro­jec­tion of US$52.24. Prices are fore­cast to climb to US$55.10 next year.

Brent crude, the bench­mark for half the world’s oil, is pro­jected to av­er­age US$52.60 this year, a de­crease from the prior es­ti­mate of US$54.23. Bloomberg

BLOOMBERG PIC

Soft­Bank an­nounced plans for the Vi­sion Fund last year, aim­ing to cre­ate a ve­hi­cle that will be­come one of the big­gest tech­nol­ogy in­vestors over the next decade.

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