New York — U.S. crude oil production is expected to fall by 600,000 barrels per day (bpd) in 2020 to 11.63 million bpd, the U.S. Energy Information Administration (EIA) said on Tuesday, a smaller decline than the 670,000 bpd it forecast previously.
The agency now expects U.S. petroleum and other liquid fuel consumption to drop 2.1 million bpd to 18.34 million bpd in 2020, a smaller decline than its previous forecast for a drop of 2.4 million bpd.
Oil prices collapsed this year as the coronavirus pandemic slammed global demand and restricted travel across the world. Demand worldwide has started to recover as some countries ease lockdowns and stay-at-home orders.
The EIA said it expects 2020 world oil consumption to drop by 8.15 million bpd to 92.89 million bpd, a smaller decline than the 8.34 million bpd previously forecast.
The largest declines in U.S. liquid fuels consumption have already occurred and consumption will generally rise through the second half of 2020 and in 2021, the agency said.
For 2021, U.S. crude production is expected to decline by 620,000 bpd to average about 11.01 million bpd after dipping under 11 million bpd during the second quarter.
U.S. oil demand in 2021 is expected to rise by 1.6 million bpd to 19.94 million bpd, compared to a previous estimate for an increase of 1.4 million bpd.
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