EIA: US crude oil production fell lower than forecast

The US Energy Information Administration (EIA) released a report showing that the country’s crude oil production is expected to drop about 160,000 barrels a day in 2021 to 11.15 million barrels a day.

This is less than the 290,000-barrel-a-day drop forecast given earlier.

The agency said U.S. consumption of gasoline and other liquid fuels will increase by 1.41 million barrels a day to 19.53 million barrels a day in 2021, in line with previous forecasts.

Oil prices recovered from low levels recorded in 2020 thanks to the Organization of the Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC +, this month agreed not to increase supply in April. 2021 as this organization awaits the need for a more stable recovery in the midst of the ongoing COVID-19 pandemic.

Baker Hughes Co, an energy services company, said the US oil rig numbers have started to rise as oil prices rebounded, recording 310 rigs last week, the highest level since May 2020.

The EIA estimated US crude production averaged 10.4 million barrels a day in February 2021, down 500,000 barrels per day from the January estimate. This decrease is mainly due to the cold weather affecting the exploitation of this country, especially the Texas area.

As the COVID-19 vaccine is deployed worldwide, the outlook for improved demand is supporting oil prices.

The EIA forecasts global gasoline and liquid fuel consumption to average 97.5 million barrels / day in 2021, an increase of about 5.3 million barrels / day compared to 2020. The agency forecasts consumption will be increasing by about 3.8 million barrels / day in 2022 to an average of 101.3 million barrels / day.