EIA cuts oil production forecast for OPEC this year OilPrice.com

In the second half of this year, OPEC’s gross domestic product (GDP) fell 600,000 barrels (BPD) a day earlier than previously forecast, according to the US Energy Information Administration (IAA). Wednesday.

EIA revised its OPEC forecast for OPEC in August with STEO. Last month, the US administration expected OPEC to increase its production more than the group agreed to meet international demand.

Due to OPEC’s expected decline in oil production, the EIA improved its forecast for global oil production. STEO’s forecast for 99.4 million b / d in July will see an average of 98.9 million bpd in the second half of 2021.

“We expect most OPEC countries to fully comply with the agreement by 2H21,” he said.

The EIA estimates that OPEC crude oil production will remain below that of OPEC. 2021 in the third quarter and fourth quarter. However, that difference is down to 300,000 in the fourth quarter.

“[B]In 1Q22, we expect OPEC crude oil production to outperform OPEC production, which will contribute to increased crude oil reserves and lower crude oil prices, ”he said.

“OPEC + leaders are expected to reconvene in December 2021 as we await some adjustments to their restrictions,” said EIA.

Despite calls from OPN management for OPEC to boost production, major oil forecasts backfired last week on how much OPEC + confidence the market needs.

By Tsvetana Paraskova for Oilprice.com

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