NEW YORK: The US expects crude production to grow by just 320,000 barrels a day next year, much slower than previously estimated.
While output is still poised to reach a record of 13.54 million barrels a day, the annual rate of growth is now projected at 2.4% versus 3.2%, the Energy Information Administration said in its Short-Term Energy Outlook.
The slowdown comes after a surprise bumper increase last year.
Since then, the number of oil rigs operating in the United States has plummeted and is hovering near the lowest since late 2021, fuelling expectations that shale producers will continue to prioritise shareholder returns over growth.
The agency also revised lower its 2025 estimate for global oil demand, which is seen growing by 1.2 million barrels a day compared to last month’s estimate of 1.5 million barrels a day. — Bloomberg
