NEW YORK: U.S. crude oil production is expected to fall 870,000 barrels per day to 11.38 million bpd this year, a less steep decline than previously forecast, the U.S. government said in its latest monthly outlook on Wednesday.
Crude output touched record highs above 12 million bpd prior to the coronavirus pandemic. Production cuts have come as crude prices have dropped due to low demand as businesses, schools and other fuel consumers have cut usage owing to the outbreak.
Further oil production cuts are expected in 2021, according to the report. Output is expected to drop 300,000 bpd to 11.08 million bpd in 2021, the report said. Previously, the agency expected a decline of just 120,000 bpd next year.
Petroleum demand is expected to fall 2.12 million bpd this year to 18.42 million bpd, versus 2 million bpd forecast last month.
Gasoline demand is expected to fall 1.04 million bpd this year to an average of 8.27 million bpd, compared with a decline of 91,000 bpd previously expected.
Demand for distillate fuels, including diesel and jet fuel, is expected to fall 340,000 bpd to 3.76 million bpd this year, slightly less than the 360,000-bpd decline forecast previously.