EIA Slashes 2023 U.S. Crude Oil Production Increase by 21%

SEATTLE (Oil Monster): The U.S. Energy Information Administration on Tuesday cut its forecast for next year's crude output growth by 21%, days after heads of oil producers warned of persistent inflation and supply chain constraints.

U.S. crude production is expected to increase by about 480,000 barrels per day (bpd) to 12.31 million bpd, the EIA said, down from a prior 610,000 bpd growth forecast.

Still, U.S. oil production in 2023 will top 2019's record 12.29 million bpd output.

Oil producers have warned in recent weeks of weaker-than-expected output, citing ageing wells, shortage of labor and materials, rising costs and a sharp focus on shareholder returns.

The lower outlook comes as U.S. President Joe Biden has called on companies to ramp up their production to push down fuel prices that are stoking inflation and threatening shortages of heating oil and diesel this winter.

The EIA also cut its demand estimates for next year to a 100,000 bpd increase from the 190,000 bpd gain it had forecast last month.

Courtesy: www.reuters.com