EIA raises US crude oil production forecast

The U.S. Energy Information Administration (EIA) recently raised its forecast for U.S. crude oil production this year to 13.19 million barrels per day, up 260,000 barrels per day from last year and up from its previous forecast of 170,000 barrels per day.

The U.S. Energy Information Administration said global crude oil production growth is expected to slow due to Opec + production cuts, and Brent crude will average $87 a barrel this year, up from its previous forecast of $82.42 a barrel. In addition, U.S. crude oil production is expected to increase by 460,000 barrels per day in 2025 to 13.65 million barrels per day, a record high.

The U.S. Energy Information Administration had previously forecast that U.S. crude oil production would decline slightly through mid-2024 and not reach the all-time high of 13.3 million barrels per day (BPD) reached in December until February 2025. Its latest forecast says production will continue to grow and hit a record high in the fourth quarter.

The U.S. Energy Information Administration said global crude oil demand will increase by 1.43 million barrels per day this year compared with 2023, an increase of 10,000 barrels per day from its previous forecast. This is not significantly different from the International Energy Agency's (IEA) forecast for an increase of 1.22 million BPD. In addition, global crude oil demand is expected to increase by 1.38 million barrels per day in 2025, an increase of 90,000 barrels per day from the previous forecast.