US statistical and analytical agency expects U.S. crude oil production to rise in late 2023.
The Energy Information Administration (EIA) forecast U.S. crude production to surpass 12.9 million barrels per day for the first time in late 2023, and to exceed 13 million barrels per day in early 2024.
Crude oil production is predicted by EIA to average 12.8 million barrels per day in 2023, which is 200,000 barrels per day more than in its July forecast, the EIA said in its August Short Term Energy Outlook (STEO).
“We forecast continued growth in domestic oil production, which is bolstered by higher oil prices and higher well productivity in the near term,” said EIA Administrator Joe DeCarolis.
EIA expects sustained global demand for petroleum consumption, and Saudi Arabia’s extended voluntary production cuts will contribute to oil prices rising through the year, the EIA said.
The Brent crude oil price was near $75 per barrel at the beginning of July and increased throughout the month to surpass $86 per barrel on August 4.
The administration expects Brent crude oil price to increase the rest of 2023 and to approach $90 per barrel in late 2023.
It also forecasts U.S. regular gasoline prices to average about $3.63 per gallon for the rest of 2023, an increase from its previous forecast of $3.27 per gallon.
Higher gasoline prices are largely the result of higher crude oil prices and a series of unplanned U.S. refinery outages so far this summer.
