US oil production is set to fall by 0.9 million barrels per day (bpd) in 2020 and a further 280,000 bpd next year due to low oil prices, weak demand and limited storage availability, the International Energy Agency (IEA) said on Tuesday
MOSCOW (Pakistan Point News / Sputnik - 16th June, 2020) US oil production is set to fall by 0.9 million barrels per day (bpd) in 2020 and a further 280,000 bpd next year due to low oil prices, weak demand and limited storage availability, the International Energy Agency (IEA) said on Tuesday.
"If well completions do not rebound from May's lows however, US oil production will continue to fall next year. For now, we expect total US oil supply to decline on average by 0.9 mb/d in 2020 and by a further 280 kb/d in 2021," the IEA said in a monthly oil market report.
In May, US oil production continued to decline due to the large-scale shut-ins, as the costly production of shale oil has been at a level below profitability, the IEA noted.
"While consolidated output data is only available through March, we estimate crude oil production fell by 0.6 mb/d m-o-m [month on month] in April and a record 1.3 mb/d in May. An expected uptick in refining activity and higher prices led some producers to announce a partial reversal of output cuts in June," the report read.
In June, US oil production is expected to fall by an additional 300,000 bpd to 10.5 million barrels per day, according to the IEA.
