U.S. Cuts Oil Production Forecast for the First Time in 6 Months
- EIA trims 2019, 2020 estimates but still expects record output
- Drillers scaling back as focus shifts to shareholder returns
Photographer: Brittany Sowacke/Bloomberg
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The U.S. government cut its oil production forecast for the first time in six months as drillers scale back in smaller shale plays and the U.S. Gulf of Mexico.
While crude output is still expected to reach record levels, the Energy Information Administration trimmed its 2019 forecast to 12.3 million barrels a day -- 110,000 barrels-a-day lower than it had forecast previously. In 2020, production is expected to reach 13.03 million barrels a day -- 170,000 barrels a day lower than last month’s estimate.