The recent rally in crude prices could drive U.S. oil production to a record annual average of 10 million barrels a day in 2018, a U.S. energy agency said Tuesday.
In its monthly forecast, the U.S. Energy Information Administration (EIA) said it expects U.S. crude production to rise by an average of 800,000 barrels a day next year.
Canada, Brazil, Norway, Britain and Kazakhstan will add another 700,000 barrels a day in 2018, the report said, adding that OPEC (Organization of the Petroleum Exporting Countries) may boost its output by 200,000 barrels a day.
Meanwhile, oil demand is expected to pick up from 1.4 million barrels a day this year to 1.6 million next year. But the EIA believes that demand is not going to keep up with growing supplies, and that could result “in global liquids inventories increasing modestly in 2018.”
The EIA believed U.S. oil prices could average 57 U.S. dollars a barrel in 2018, about 2 dollars per barrel higher than its previous forecast last month.