U.S. oil production to fall to 11.1 million barrels a day in 2021: EIA

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U.S. crude production won’t bounce back in 2021 from last year’s fall, the Energy Information Administration forecast in its January Short-Term Energy Outlook released Tuesday. The EIA estimated that U.S. output will fall to 11.1 million barrels a day this year. Production dropped to 11.3 million barrels a day in 2020 from a record 12.2 million barrels a day in 2019. The agency sees production rising to 11.5 million barrels a day in 2022. Production by the Organization of the Petroleum Exporting Countries, or OPEC, is expected to average 27.2 million barrels a day in 2021, up from an estimated 25.6 million barrels a day in 2020, the agency forecast. On the demand side, which was slammed last year by the COVID-19 pandemic and remains under wraps, the EIA estimated global consumption of petroleum and liquid fuels averaged 92.2 million barrels a day for all of 2020, down by 9 million barrels a day from 2019. EIA said it expects global liquid fuels consumption to grow 5.6 million barrels a day in 2021 and 3.3 million barrels a day in 2022. Oil futures remained higher after the report, with West Texas Intermediate crude for February delivery up 73 cents, or 1.4%, at $52.98 a barrel on the New York Mercantile Exchange.
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