US Energy Information Administration (EIA) expects US oil production to average 8.8 million barrels per day in 2016 and 8.5 million barrels per day in 2017. In its monthly energy outlook report, the government agency forecast an average price of $41.92 a barrel for WTI this year, up from a previous estimate of $41.16.
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During the week of August 29, Baker Hughes Inc. reported that the USA oil drilling rig count rose for a ninth week in ten.
“The decline in US oil production this year and in 2017 is not expected to be as steep as in previous forecasts, because of improved drilling rig efficiencies and more rigs drilling”, EIA Administrator Adam Sieminski said in an e-mailed statement.
This was the fourth consecutive month in which Brent spot crude oil prices averaged between $44 a barrel and $49 abarrel, the EIA said.
WTI crude will average $41.92 a barrel in 2016 vs. the August projection of $41.16, according to the report.
“The decline in US oil production this year and in 2017 is not expected to be as steep as in previous forecasts, because of improved drilling rig efficiencies and more rigs drilling”, EIA Administrator Adam Sieminski said in a statement.
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“Gasoline retail prices are down this year because of a combination of modest crude oil prices and abundant supplies of gasoline from high levels of refinery production”, Sieminski said.
