On Tuesday, the US Energy Department revealed prediction that the country’s oil firms are likely to temporarily cut oil output by 2 million bpd due to the oil prices crash. It expected the private sector and the free market to drive those cuts.
The Energy Information Administration (EIA) estimated US oil output to gradually drop through the first three months of 2021 to around 11 million bpd, down by 1.8 million bpd down from the peak in 2019.
Last year, the US produced a record of more than 12 million bpd of crude.
On a related account, on Monday the US President Donald Trump said that the Organization of the Petroleum Countries (OPEC) had not urged him to command US oil producers to cut outputs to balance prices.
Trump stated that he expected US cuts to be automatically orchestrated by private companies instead, as the country does not possess national oil companies.
Meanwhile, on Thursday, OPEC and its non-member allies (OPEC+) will address efforts to stabilize the global oil markets. The group will agree to deepen oil output cuts only if the US joins the effort.
