September 10, 2019 / 5:06 PM / 13 days ago

UPDATE 1-U.S. crude output to grow slower-than-expected to record - EIA

(Adds details, milestones, comments)

NEW YORK, Sept 10 (Reuters) - U.S. crude oil production is expected to rise by 1.25 million barrels per day (bpd) in 2019 to a record of 12.24 million bpd, the U.S. Energy Information Administration (EIA) said on Tuesday, slightly lower than its previous forecast for a rise of 1.28 million bpd.

The output in 2020 is forecast to rise by 990,000 bpd to 13.23 million bpd, according to the EIA.

“EIA’s September Short-Term Energy Outlook continues to forecast record U.S. crude oil production in 2019 and 2020,” said EIA Administrator, Dr. Linda Capuano.

U.S. crude output has surged to records above 12 million bpd this year, thanks to gains from the Permian basin spanning Texas and New Mexico, the biggest oil patch in the country. The United States is now the world’s largest producer, ahead of Saudi Arabia and Russia.

Still, the rate of growth has slowed, with U.S. energy firms reducing the number of oil rigs operating for the ninth straight month to its lowest since January 2018 as most producers cut spending on new drilling this year.

A trade war between China and the United States, the world’s two largest economies, has roiled financial markets and sparked worries about economic and oil demand growth.

The EIA also cut its 2019 world oil demand growth forecast by 110,000 bpd to 890,000 bpd. In the monthly forecast, the agency cut its world oil demand growth estimate for 2020 by 30,000 bpd to 1.40 million bpd.

Meanwhile, the EIA forecast U.S. oil demand for 2019 to rise by 140,000 bpd to 20.59 million bpd, down from 210,000 bpd in its previous estimate. The agency also estimates U.S. oil demand will rise by 260,000 bpd to 20.85 million bpd in 2020, lower than a previous forecast of a 260,000 bpd increase. (Reporting by Devika Krishna Kumar in New York; Editing by Richard Chang and Marguerita Choy)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below