US Government Cuts 2015 Domestic Oil Production Forecast


NEW YORK, Dec 9 (Reuters) - The U.S. government on Tuesday cut its forecast for domestic oil production growth in 2015 by about 100,000 barrels per day and trimmed its forecast for global oil demand growth next year by 240,000 bpd.

The U.S. Energy Information Administration now expects U.S. production next year to rise by 720,000 bpd to around 9.3 million bpd, according to its monthly short-term energy outlook. A month ago, it was forecasting a 850,000-bpd rise next year.

Last month, the EIA trimmed its 2015 U.S. production outlook by 100,000 bpd to an average of 9.4 million bpd.

World oil demand next year is now expected to grow by 880,000 bpd, the agency said on Tuesday. It had previously forecast the year-on-year increase at 1.12 million bpd.

The lower forecasts come amid a sharp slide in global oil markets, with the price of oil trading near five-year lows on a combination of global oversupply and lackluster demand.

U.S. crude oil, however, was trading up 37 cents at $62.68 a barrel on Tuesday, while Brent was trading up 29 cents at $65.90 a barrel. The price of crude has fallen some 40 percent since June.

Prices already were declining when the Organization of the Petroleum Exporting Countries (OPEC) said last month it would not cut production, an indication of its members' desire to retain market share. The decision led to a further sell-off in oil markets.

The EIA said it expects OPEC crude oil production to fall by 100,000 bpd in 2014 and by 200,000 bpd in 2015.

(Reporting by Catherine Ngai; Editing by Paul Simao)

Copyright 2016 Thomson Reuters. Click for Restrictions.


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