The US Energy Information Administration (EIA) raised its oil production forecasts in its latest Short-Term Energy Outlook report. According to the report, US crude oil production will reach 12.78 million barrels per day in 2023. This means that the supply increased by 870 thousand barrels/day compared to the previous year.
EIA estimated that daily oil production of the USA will increase by 380 thousand barrels in 2024, reaching 13.16 million barrels. The institution also predicted that global oil stocks will decrease by 200 thousand barrels per day in the fourth quarter of 2023 after Saudi Arabia extended its production cut.
The American government agency raised its price forecast even though it expects an increase in production. EIA revised its year-end average price forecast for Brent oil from $86 to $93.
Brent oil is currently trading around $92, which was last seen in November 2022. Unless there is a development that will bring the price down, it is likely that Brent oil will continue to rise.
The rise in Brent price is reflected in fuel prices in our country. As of this morning, the price of diesel has exceeded 40 TL.