EIA Predicts Dip in U.S. Natural Gas Production in Q2

SEATTLE (Oil Monster): The latest Short-term Energy Outlook (STEO) report published by the U.S. Energy Information Administration (EIA) predicts slower oil demand growth during 2024. Also, the U.S. natural gas production is predicted to witness a decline by 2% from Q1 to Q2 this year.

As per EIA estimates, the OPEC+ producers continued to stick on to their voluntary production cuts during the initial quarter of the year. The production cuts eliminated approximately 2.2 million barrels per day (mbpd) of supply from the world oil market during the initial quarter of the year. The additional production cuts by OPEC+ countries further tightened the market in Q2 this year, the report noted.

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The global oil and liquid fuels consumption is expected to increase by 920,000 barrels per day (bpd) during the current year to reach 102.84mbpd, marginally lower upon comparison with 950,000 bpd growth projected in the previous STEM report.

The global production of crude oil and liquid fuels is expected to increase by 970,000bpd to 102.76mbpd in 2024, higher than the previous estimate of 850,000 bpd.

EIA expects US dry natural gas production to decline by 2% from Q1 2024 to Q2 2024. The country’s dry natural gas production will see marginal 1% decline this year, before rising by 2% next year to touch record of 105 bcf/d.