U.S. seen cutting oil imports to lowest since Eisenhower

By Jessica Summers on 5/8/2018
NEW YORK (Bloomberg) -- The U.S. will cut its reliance on foreign oil to the lowest in more than 60 years as domestic crude output surges to record levels.

The Energy Information Administration sees net imports of crude and petroleum products dropping to 1.5 MMbpd in 2019, the lowest level since Dwight Eisenhower was president. The agency also raised its U.S. production outlook for both this year and next.

The forecast come as prices near $70/bbl have encouraged drillers to turn the taps higher. Crude production in the U.S. is already at a record-high and the oil rig count hovers at levels last seen in March 2015.

Next year, crude production is seen averaging 11.86 MMbpd, up from a prior forecast of 11.44 MMbpd, according to the EIA’s Short-Term Energy Outlook released on Tuesday. Domestic output will average 10.72 MMbpd this year, still above the 1970 record of 9.6 MMbpd and raised from a 10.69 MMbpd forecast in an April report.

The U.S. government also reiterated that crude production will still top 11 MMbpd in October.

The EIA decreased its forecasts for both global production and demand growth this year. Output is seen at 100.45 MMbpd, down from 100.47 million previously, with demand growth at 100.28 million, compared with 100.31 million estimated previously.

The EIA also boosted its price forecasts for both WTI and Brent for this year and next. WTI futures have risen by 14% this year.

Related News ///


Comments ///


{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}