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US seen cutting oil imports to lowest in 60 years

May 08 2018 20:23
Jessica Summers, Bloomberg

New York - The US 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 million barrels a day in 2019, the lowest level since Dwight Eisenhower was president. The agency also raised its US production outlook for both this year and next.

The forecast come as prices near $70 a barrel have encouraged drillers to turn the taps higher. Crude production in the US 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 million barrels a day, up from a prior forecast of 11.44 million a day, according to the EIA’s Short-Term Energy Outlook released on Tuesday.

Domestic output will average 10.72 million a day this year, still above the 1970 record of 9.6 million a day and raised from a 10.69 million a day forecast in an April report.

The US government also reiterated that crude production will still top 11 million barrels a day in October.

The EIA decreased its forecasts for both global production and demand growth this year. Output is seen at 100.45 million barrels a day, 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.

us  |  commodities  |  markets  |  oil
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