U.S. crude oil production is expected to fall by 210,000 barrels per day (bpd) in 2021 to 11.10 million bpd, the U.S. Energy Information Administration (EIA) said on Wednesday, a smaller decline than its previous forecast for a drop of 230,000 bpd.
Oil prices have rebounded to their highest levels in about three years, helped by output curbs by the Organization of the Petroleum Exporting Countries and allies.
"We expect rising production will reduce the persistent global oil inventory draws that have occurred for much of the past year and keep prices similar to current levels, averaging $72 per barrel during the second half of 2021," the agency said. U.S. output is expected to average 11.85 million bpd, up from a forecast average of 11.10 million bpd in 2021.