Next year, the US government doesn’t see global or US crude production as high as it once did. The Energy Information Administration decreased its 2019 forecast for global production to 102.21 million barrels a day, with most of the downward revision from the Organization of Petroleum Exporting countries.
World demand growth is unchanged. At the same time, it sees US crude production averaging 11.76 million barrels a day, 10,000 barrels a day lower than the May outlook.
“Global oil supplies have been lower than expected, notably because of outages in major oil producer, Venezuela,” Linda Capuano, Administrator of the EIA, said. “The forecast for Brent crude oil is for spot prices to remain above $70 per barrel this year, as global oil demand
The EIA boosted its Brent estimate for both this year and next. The agency sees domestic output averaging 10.79 million barrels a day this year, above the 1970 record of 9.6 million a day and higher than forecast in its May report, according to the EIA’s Short-Term Energy Outlook released.