UEA: U.S. Oil Production Will Set a Record in 2023

US Oil Production Set to Reach Record Levels

The U.S. Energy Information Administration (EIA) announced that oil production in the United States is expected to reach a record level of 13.53 million barrels per day in 2023, exceeding previous forecasts. However, the EIA also warned that the increased production will exert pressure on prices due to oversupply.

Increase in Production Figures

According to the EIA's report, U.S. oil production reached a historic peak of 13.23 million barrels/day last year. This year, daily average production is expected to rise to 13.53 million barrels/day, compared to the earlier estimate of 13.44 million barrels.

Pressure on Prices

As oil production in the U.S. continues alongside concerns about oversupply in the market, the EIA anticipates that crude oil inventories will increase throughout next year. This situation is expected to create significant downward pressure on prices.

Expectation of a Decrease in Production Next Year

According to the EIA's short-term energy outlook report, U.S. oil production is expected to decline by 0.1% to 13.51 million barrels per day in 2024. This estimate shows a relatively limited improvement compared to previous forecasts of more than a 1% decline.