News October 9, 2019

Oil Forecast Released

by Jackson Hole Radio News

Concerns for gasoline shortages and rising prices seem to have been premature after the attack on Saudi oil production facilities last month.  The U.S. Energy Information Administration now expects global liquid fuel inventories to increase in 2020, despite the rising oil demand and reduced OPEC production. EIA expects global liquid fuel inventories to increase by about 300,000 barrels per day in 2020. EIA’s October Short-Term Energy Outlook forecasts that non-OPEC liquid fuels production will outpace global consumption and more than offset OPEC declines in production in 2020. Although EIA forecasts the growth in U.S. crude oil production to slow in 2019 and 2020, the October outlook continues to expect U.S. crude oil production to set records in both years, with production set to average 12.3 million barrels per day in 2019, followed by an average of 13.2 million barrels in 2020, and the cost of that oil to decrease by $2 a barrel next year. That, in turn should bode well for next year’s summer travel season.