On Tuesday, the US Energy Information Administration (EIA) lowered its decline projection on the country’s crude oil output for 2020.
This year, the EIA estimated the US crude production to fall by 600,000 bpd, a smaller fall compared to its previous forecast of 670,000 bpd.
The country’s petroleum and other liquid fuel to likely slump by 2.1 million bpd to 18.34 million bpd this year. This prediction is comparable to EIA’s previous projection of a drop of 2.4 million bpd.
The year’s global oil consumption is to fall by 8.15 million bpd year-on-year to 92.89 million bpd. Previously, the EIA expected a 8.34 million bpd of decrease.
The EIA further said that the US has passed the biggest declines in liquid fuel consumption. The consumption will likely to rise generally in the second half of this year and through 2021.
Looking ahead, the agency estimated that in 2021, the country’s crude output is to fall by 620,000 bpd to average at around 11.01 million bpd. The US oil demand next year would likely increase by 1.6 million bpd, from the previous estimate of a 1.4 million bpd of increase, to 19.94 million bpd.
