U.S. crude producers are still set to pump record amounts of the commodity next year, but less so than previously projected, according to the latest government estimates.
Domestic output will average 9.9 million barrels a day next year, the U.S. Energy Information Administration said in its monthly Short-Term Energy Outlook released July 11. That’s down from a June estimate of 10.01 million barrels. The previous annual record of 9.6 million was set in 1970.
This was the first time the EIA lowered its forecast for 2018 production since the agency started posting the estimates in January.
The agency also cut its 2018 price forecast for West Texas Intermediate crude, the U.S. benchmark, to $49.58 from last month’s estimate of $53.61. The EIA lowered its 2017 estimate to $48.95 from $50.78. Brent crude, the global benchmark, is projected to average $51.58 next year and $50.79 this year, compared with prior estimates of $55.61 and $52.69 in June.
For 2017, domestic production is seen at 9.33 million barrels a day, unchanged from the June outlook. Global production is forecast to be 100.2 million barrels a day next year with demand at 100 million barrels a day.