Home > Dynamic > EIA sees record U.S....

EIA sees record U.S. crude production in 2023

2022-02-08

1264

In its monthly Short-Term Energy Outlook report, the EIA said on Tuesday that U.S. crude oil production is expected to rise by 610,000 bpd to 12.41 million bpd in 2023, surpassing the previous record of 12.3 million bpd set in 2019. U.S. oil production is expected to increase for nine consecutive quarters starting in the final three months of 2021, the agency said.

Shale oil is back! EIA sees record U.S. crude production in 2023

U.S. crude production hit a monthly peak in late 2019, but a few months later, the Covid-19 pandemic shook global markets and forced crude producers to cut output. Oil prices have recovered more than 50% since then, but major oil producers have been reluctant to restore supplies too quickly, keeping the current monthly figure below pre-pandemic highs.

"The relatively high crude oil prices should provide ample funding for increased production," the EIA said in its monthly report. The agency expects U.S. crude oil production to exceed 12 million barrels per day starting in the fourth quarter of this year.

On the demand side, EIA forecasts that US oil demand is expected to increase by 330,000 barrels per day to 20.92 million barrels in 2023; US gasoline demand is expected to increase by 90,000 barrels to 9.15 million barrels per day.

Global oil supply set to hit record this year

The EIA expects global oil supply to rise to a record 101.05 million barrels per day this year, up from a forecast of 100.93 million barrels per day last month, and global oil production to rise further to 102.8 million barrels a day by 2023.

The agency also expects global oil consumption to reach 100.52 million barrels per day this year, up from an earlier estimate of 100.46 million barrels; by 2023, oil consumption will jump to 102.3 million barrels per day.

"We expect global demand for petroleum products to recover and exceed pre-pandemic levels this year, but crude production will grow at a faster rate," EIA Acting Administrator Steve Nalley said in a statement. "We expect that as crude production increases, inventories will begin to replenish and push down prices for gasoline, jet fuel and other petroleum products in the near term."

The EIA raised its 2022 price forecast for West Texas Intermediate (WTI) to $71.32 a barrel, up 7.4% from its December forecast but still significantly below the current level of $81. WTI crude oil futures have had a strong start to the year, having gained more than $5 a barrel since the end of 2021.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

CM Trade

As a world leading financial trading platform, CMtrade Provides comprehensive one-stop trading services and opportunities for traders.

[Products]

The platform provides over 32 kinds of popular financial products such as forex, precious metals, crude oil, indices, cryptocurrencies and more.

[System]

2 top trading systems CM Trade MT4 / CM Trade APP, powerful and easy to operate

[Service]

Comprehensive market news, professional market analysis, 7*24 hours online customer service

[Advantage]

Low cost, high leverage, flexible one-stop all day two-way trading.

[Authority]

Licensed and strictly regulated by authorities. Traders deposits are independently kept by the bank. Fast deposit and withdrawal. Fair, efficient and transparent trading environment.

Free Access
Daily Trading Strategy Download Now

CM Trade Mobile Application

Economics Calendar

EIA sees record U.S. crude production in 2023

Access to global trading markets anytime and anywhere