BAKU, Azerbaijan, Nov.16
By Leman Zeynalova – Trend:
US oil output will not return to pre-COVID level until end-2022, Trend reports with reference to the International Energy Agency (IEA).
“Global oil production is already rising. In October, oil supplies leapt by 1.4 mb/d to 97.7 mb/d, with the US post-hurricane recovery accounting for half the increase. A further boost of 1.5 mb/d is expected over November and December even as OPEC+ disregarded pleas from major consumers to ramp up beyond a monthly allocated 400 kb/d to cool prices. Over this period, the US is now poised to provide the largest increase in supply of any individual country,” reads the latest IEA report.
The agency has raised its forecast for the US by 300 kb/d for 4Q21 and by 200 kb/d on average in 2022 as current prices provide a strong incentive to boost activity even as operators stick to capital discipline pledges.
“The US is set to account for 60 percent of 2022 non-OPEC+ supply gains, now forecast at 1.9 mb/d. Even so, the US will not return to pre-COVID rates until the end of 2022,” the report says.
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