US expects that OPEC will continue to cut oil production in 2020

the energy information Administration (EIA) US Department of energy predicted that OPEC will reduce oil production in 2020.

According to the February short-term energy forecast EIA, OPEC cut oil production by 500 thousand barrels per day in March-may because of lower expected global demand at the beginning of 2020. While production is expected to average at 28.9 million barrels a day in 2020, which is 0.3 million less than expected in January.

Management has reduced the growth forecast for world oil demand for the current year by 310 thousand barrels per day, since the outbreak of coronavirus has hit demand in China. It is expected that world demand in 2020 will increase by 1.03 million barrels per day to 101,74 million barrels per day.

the Technical Committee of the OPEC+ last week recommended to reduce production by another 600 thousand barrels per day, to support oil demand amid the spread of “Wuhan coronavirus”.

the EIA also lowered its forecast of growth of oil production in the United States. Now management expects the oil production in the United States in 2020 will increase by 960 thousand barrels per day to a record 13.2 million barrels per day. The volume of production in 2021, according to EIA estimates, will increase by 360 thousand barrels per day to 13.56 million barrels per day.