EIA STEO Highlights
In its August Short-Term Energy Outlook, the US Energy Information Administration (EIA) is projecting a rise in US oil production of 1.28M b/d in 2019 to 12.27M b/d, down from a forecast last month of growth of 1.4M b/d. The downward revision came after Hurricane Barry disrupted US Gulf oil output in July, which at 11.72M b/d was down 720K b/d from last month’s projection. A 90K b/d upward revision in next year’s growth forecast leaves expected output in 2020 unchanged at 13.26M b/d.
Meanwhile, the EIA said that OPEC oil production fell to its lowest in over 5 years in July amidst a 150K b/d m-o-m drop in Saudi output to a near-decade low of 9.70M b/d, while declines were also seen from Iran, Nigeria, Libya and Venezuela.
By early afternoon in London, ICE Brent was trading at $57.35/bbl, down $1.59/bbl from the end of Tuesday’s trading.