US crude oil production will not increase in 2024
U.S. crude production fell in January and no growth is expected this year, the EIA said Tuesday in its latest Short Term Energy Outlook . The agency also lowered its forecast for U.S. oil demand to 20.39 million barrels per day from its previous forecast of 20.45 million barrels per day.
The cold snap that hit parts of the United States in January knocked out crude oil production, pushing daily output down to just 12.6 million barrels per day, down from 13.3 million bpd, it said. declared the EIA. While the EIA expects U.S. oil production to return to just below record levels in February, it expects a slight decline in production for the rest of the year.
According to the EIA, we will have to wait until February 2025 to reach another record. “We expect production to return to nearly 13.3 million b/h by February, but then decline slightly through mid-2024 and not exceed the December 2023 record until February 2025,” the EIA said in its STEO.
If the forecast is correct, the lack of production growth in the United States could help OPEC tighten the market, supporting crude prices. The EIA projects a global oil supply deficit of 120,000 bpd this year.
This forecast falls between the IEA and OPEC forecasts. The IEA forecast suggests a balance between supply and demand for most of 2024, with the possibility of at least a supply surplus in the second half of the year. OPEC, on the other hand, expects good oil demand this year and a supply deficit until next year. The difference between these two precisions is indicative of the uncertainty with which 2024 opens.
The EIA's latest estimate of weekly crude oil production in the field pegs the daily rate at 13 million bpd as of Jan. 26, about 200,000 bpd below the all-time high of 13.3 million bpd. But production the previous week, during the cold snap, is estimated to have fallen to 12.3 million bpd.
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The article US crude oil production will not increase in 2024 comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/nel-2024-la-produzione-di-greggio-usa-non-aumentera/ on Wed, 07 Feb 2024 08:00:25 +0000.