EIA cuts forecast for 2019 U.S. crude production growth
(Adds demand projections, comments, prices)
NEW YORK, Sept 11 (Reuters) - U.S. crude oil production in
2019 is expected to grow at a slower rate than previously
forecast, according to a monthly U.S. government forecast on
U.S. crude production is expected to rise by 840,000 barrels
per day (bpd) to 11.5 million bpd next year, lower than a
previous expectation for it to rise 1.02 million bpd to 11.7
million, according to a report from the U.S. Energy Information
Oil demand growth in 2019 is expected to rise by 250,000
bpd, a decrease from EIA's previous projection for an increase
of 290,000 bpd.
The agency largely left 2018 production and demand growth
A shale boom has helped send U.S. production surging above
10 million bpd this year for the first time since the 1970s. But
drilling activity in the Permian basin, the largest U.S. oil
patch, has begun showing signs of a slowdown due to limited
pipeline takeaway capacity.
U.S. crude oil production in 2018 is expected to grow 1.31
million barrels per day (bpd) to 10.66 million bpd, little
changed from EIA's previous forecast. Demand in 2018 is likely
to grow by 470,000 bpd, also unchanged.
"EIA's September outlook revised expectations for Brent spot
prices upward to an average of $73 per barrel for 2018," EIA
Administrator Linda Capuano said.
"The change was largely due to lower expectations for
Canada's crude oil production and OPEC's condensate production,"
Saudi Arabia wants oil to stay between $70 and $80 a barrel
for now as the world's biggest crude exporter strikes a balance
between maximizing revenue and keeping a lid on prices until
U.S. congressional elections in November, OPEC and industry
sources have told Reuters.
EIA forecasts Brent spot prices to average $74 per barrel in
Oil prices rose more than 2 percent on Tuesday, with Brent
crude futures up $1.48 to $78.85 a barrel by 12:36 p.m.
EDT (1636 GMT). U.S. West Texas Intermediate (WTI) crude
gained $1.74 to trade at $69.28 a barrel.
(Reporting by Devika Krishna Kumar in New York
Editing by Marguerita Choy and Paul Simao)
First Published: 2018-09-11 18:16:15
Updated 2018-09-11 18:47:19
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