EIA lowers forecast for US oil production – Commerzbank
|The US Energy Information Administration (EIA) has revised its forecast for US crude oil production downwards, Commerzbank's commodity analyst Carsten Fritsch notes.
Decline in production may even start earlier
"It now expects an increase of only 200 thousand barrels per day this year. The peak is expected to be reached in December at 13.7 million barrels per day. After that, production is expected to decline and reach 13.44 million barrels per day by the end of 2026. The sharp drop in prices is leaving visible traces."
"The decline in production may even start earlier. This week, some shale oil companies have announced that they will reduce spending and drilling activities in the Permian Basin. The president of one of the companies, referring to the industry, spoke of a dramatic decline in business and a likely drop in oil production."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.