US Department of Energy Lowered Oil Production Forecast after the Collapse of OPEC Deal
OREANDA-NEWS. In 2020, US crude oil production will average 13 million barrels per day, and by 2021 this figure will drop to 12.7 million. This is stated in the report of the Energy Information Administration (EIA), a division of the US Department of Energy.
Oil production will decline in 2021 due to the fall of fuel price after OPEC and non-cartel countries, including Russia, did not extend the agreement to reduce production. EIA forecasts indicate that a drop in fuel prices will affect production over the next six months. Thus, in the United States there will be a decrease in the annual level of oil production for the first time since 2016. The EIA expects that monthly US oil production will begin to decline in May – from 13.2 million barrels to 12.8 million barrels per day by December of this year, despite a projected average annual production growth of 0.8 barrels per day in 2020.
According to the EIA, with a decrease in oil prices, gasoline will become cheaper. In 2020, it is expected to cost 2.14 dollars a gallon compared to 2.60 dollars in 2020.
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