EIA hikes US oil output forecast, warns oversupply will slash prices

Core Insights - U.S. oil production is projected to reach a record average of 13.53 million barrels per day (bpd) in 2023, an increase from the previous forecast of 13.44 million bpd, surpassing last year's average of 13.23 million bpd [1][3] Production Forecast - The increase in U.S. oil output is attributed to higher production levels in July and an upward revision for offshore U.S. Gulf production, which is expected to average 1.89 million bpd this year, up from 1.84 million bpd [3][4] Price Outlook - Despite the production increase, the Energy Information Administration (EIA) warns of an oversupplied oil market, predicting that crude oil inventories will rise and exert downward pressure on prices [2] - U.S. West Texas Intermediate crude prices are expected to average around $65 per barrel in 2023, reflecting a 15% decline from the previous year, while Brent crude prices are projected to average approximately $68.64 per barrel, also down nearly 15% from last year [2]