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