U.S. Lowers 2016 Crude Output Forecast as Drillers Idle Rigs
- WTI oil estimated to average $51.31 in 2016, down from $53.57
- Brent crude 2016 price projection reduced to $58.57 a barrel
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The Energy Information Administration cut its U.S. crude production outlook for next year as declining prices are prompting shale drillers to put rigs aside. Cheaper gasoline is expected to stoke demand for the motor fuel.
The agency decreased its 2016 forecast by 1 percent to 8.77 million barrels a day, according to its monthly Short-Term Energy Outlook. It boosted its estimate for this year to 9.29 million barrels a day from the 9.25 million predicted last month.