EIA Expects Oil Output to Rise Significantly in 2023

SEATTLE (Oil Monster): The U.S. crude oil production will rise faster than previously expected, says the new outlook report published by the U.S. Energy Information Administration (EIA). The new outlook was released following OPEC+ countries deciding to extend output cuts through 2024.

The EIA Short-Term Energy Outlook noted that the OPEC+ production cuts will lead to slight reduction in oil inventories in the next five quarters and boost world oil prices in late-2023 and eaqrly-2024.

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The Brent crude prices are expected to average at $79.54 a barrel during the current year, marginally higher by 1% from the prior estimate provided by EIA. Also, the U.S. West Texas Intermediate crude prices are projected to average at $74.60 a barrel, nearly 1.3% higher than previous forecast.

The latest report trims the gain in U.S. total petroleum consumption to only 100,000 bpd, upon comparison with the gain of 200,000 bpd in the previous outlook report. The U.S. crude oil production is forecast to increase by 720,000 bpd to 12.61 million bpd, higher than the previous forecast.

Despite slowdown in U.S. oil production gains, the U.S. annual oil output is still expected to hit record levels in 2023 and 2024.