U.S. crude oil output is set to grow slightly more than earlier estimates for this year and next, the U.S. Energy Information Administration (EIA) said on Tuesday, as the agency also hiked its global and domestic oil price forecasts.
U.S. crude oil production will rise by around 280,000 barrels per day (bpd) this year to 13.21 million bpd, and by 510,000 bpd to 13.72 million bpd in 2025, the EIA said.
It had previously estimated output to rise by 260,000 bpd this year and by 460,000 bpd next year.
EIA now expects Brent crude oil prices to average $88.55 a barrel this year, up from its earlier forecast of $87, while U.S. West Texas Intermediate crude prices are now expected to average $83.78 a barrel this year. In March, the EIA had forecast WTI prices will average $82.15 a barrel this year.
The increased forecasts reflect expectations of strong global oil inventory draws in the current quarter and ongoing geopolitical risks, the EIA said in its monthly short-term energy outlook.
(Reporting by Shariq Khan in New York and Liz Hampton in Denver; Editing by Alexander Smith)