U.S. EIA Slashed Oil Demand Forecasts for 2025

SEATTLE (Oil Monster): The U.S. Energy Information Administration (EIA) published its latest Short-Term Energy Outlook (STEO) report.

The EIA predicts that this year's global oil demand will reach 103.1 million barrels per day. This is around 20,000 barrels per day (bpd) less than the previous projections. The demand is predicted to increase to 104.3 million bpd in 2025, a growth of 1.2 million bpd. The decline in industrial production and manufacturing growth in the United States and Canada is the primary cause of the reduction in demand projection.

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The U.S. oil demand is expected to climb to 20.5 million barrels per day (bpd) in 2019, a slight decrease from the previous estimate of 20.6 million bpd by the EIA. The EIA maintained its projection for U.S. oil demand this year at 20.3 million barrels per day.

According to the EIA, U.S. oil production is predicted to reach lower levels this year and the following year. This year, the nation is predicted to pump 13.22 million barrels of oil, somewhat less than the previous prediction of 13.25 million barrels. US oil production is expected to average 13.54 million barrels, which is 1% less than the previous estimate of 13.67 million barrels per day.

Forecasts for oil prices in 2024 and 2025 were cut by the STEO. It projects U.S. crude oil prices to average approximately $76.91 per barrel this year, a 2.4% decrease from the previous estimate. Additionally, it is anticipated that the average price of Brent would be $80.89 per barrel this year, 2.3% less than the prior estimate.