NEW YORK: US oil output is expected to rise 1.28 million barrels per day to 12.27 million bpd this year, the US Energy Information Administration said in a monthly report, slightly lowering its annual growth forecast from 1.40 bpd last month.
The reduction in the EIA's growth forecast came after Hurricane Barry disrupted Gulf of Mexico output in July, the agency said.
"EIA's August Short-Term Energy Outlook estimates a decrease in US crude oil production in July due to the Gulf of Mexico storm Hurricane Barry," EIA Administrator Dr. Linda Capuano said following the release of the data. "Increasing onshore production partially offset the decrease, driven by production increases in the Permian tight oil formations."
Growth in the Permian Basin of Texas and New Mexico and other shale basins has boosted the US to become the world's top crude producer, exceeding output from Russia and Saudi Arabia.
The agency increased its forecast for production growth in 2020 to 990,000 bpd from 900,000 bpd previously.
Demand for oil and other liquid fuels is expected to rise 210,000 bpd to 20.66 million bpd in 2019, the agency said, reducing its forecast by 40,000 bpd from the previous month. Demand is expected to rise 260,000 bpd to 20.92 million bpd in 2020, compared with a 210,000 bpd increase expected last month.