EIA lowers forecast for US oil production – Commerzbank

The US Energy Information Administration (EIA) has revised its forecast for US crude oil production downwards, Commerzbank's commodity analyst Carsten Fritsch notes.

Decline in production may even start earlier

"It now expects an increase of only 200 thousand barrels per day this year. The peak is expected to be reached in December at 13.7 million barrels per day. After that, production is expected to decline and reach 13.44 million barrels per day by the end of 2026. The sharp drop in prices is leaving visible traces."

"The decline in production may even start earlier. This week, some shale oil companies have announced that they will reduce spending and drilling activities in the Permian Basin. The president of one of the companies, referring to the industry, spoke of a dramatic decline in business and a likely drop in oil production."