• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days If hydrogen is the answer, you're asking the wrong question
  • 22 hours How Far Have We Really Gotten With Alternative Energy
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
China Holds The Key To 2024 Global Oil Demand Growth

China Holds The Key To 2024 Global Oil Demand Growth

Despite an increase in China’s…

Biden’s SPR Gamble Sparks Debate Over U.S. Energy Security

Biden’s SPR Gamble Sparks Debate Over U.S. Energy Security

The Biden Administration has significantly…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

EIA Sees 2017 U.S. Oil Output Rising By 110,000 Bpd

Oil rigs

The Energy Information Administration said in its latest Short-Term Energy Outlook that crude oil production in the U.S. this year will average 9 million barrels daily, or 110,000 bpd more than last year.

The figure is a substantial upward revision on the 80,000-bpd decline that the EIA forecast in the December edition of the Short-Term Energy Outlook.

What’s more, the prospects for 2018 are also rosy, production-wise, with output seen to rise further to 9.3 million barrels daily, with domestic demand averaging 20.22 million bpd in 2018, up by 370,000 bpd from 2017.

The EIA also noted in its monthly report that this production increase will pressure prices, keeping them closer to US$50 than US$60, which is likely to deepen concerns about the short-term prospects of oil prices, adding to doubts about the effectiveness of OPEC’s production cut deal.

These doubts were there from the very start, with a number of analysts pointing out that OPEC members and non-OPEC producers such as Russia have a history of cheating whenever a concerted effort is made by producers to improve prices by cutting production.

This time is no different, with most observers expecting Iraq to be the first one to fall off the supply-curb wagon because of its almost exclusive dependency on oil export revenues. Yet, besides Iraq, which is a party to the deal, there are also Iran, Libya, and Nigeria, which have all been exempted from it.

All these countries are increasing their production, as are U.S. producers, all of them seeking to make the best of the higher prices while they last. This, according to EIA will not last for long: the agency expects WTI to average US$52 a barrel this year and US$55 in 2018, with Brent US$1 higher than this in both years.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News