EIA Updates 2024 and 2025 Crude Oil and World Oil Demand Forecasts, Reports 50% Increase Around Cape of Good Hope

Jun 11, 2024, 04:04 PM

The U.S. Energy Information Administration (EIA) has released updated forecasts for crude oil production and world oil demand. The EIA reports that the amount of crude oil and oil products flowing around the Cape of Good Hope increased nearly 50% in the first five months of 2024 compared to the 2023 average. Additionally, the EIA has raised its forecast for 2024 and 2025 world oil demand growth by 180,000 barrels per day (BPD) and 80,000 BPD, respectively. The new forecast projects a year-on-year increase of 1.10 million BPD in 2024 and 1.50 million BPD in 2025. The EIA also adjusted its crude oil production forecasts, predicting U.S. crude oil output to rise by 310,000 BPD in 2024 and by 470,000 BPD in 2025. The current year production forecast has been revised to 13.24 million BPD, up from the previous 13.20 million BPD, while the year-ahead forecast has been slightly adjusted to 13.71 million BPD from 13.73 million BPD. The EIA also updated its forecasts for dry natural gas production, with the current year forecast at 102.05 billion cubic feet per day (Bcf/d) and the forward year forecast at 104.40 Bcf/d.