EIA report states that the U.S. continues to oil production at a record level for 2023.

oil production
In its Monthly Short Term Energy Outlook, the U.S. Energy Information Administration stated Tuesday that domestic crude oil, natural gas, and coal production will increase next year compared to this year.

 

oil production
 

EIA predicts that U.S. crude oil production will rise 6.7% to an annual record 12.7M barrels/day in 2023, up from 11.9M in 2022. U.S. natural gasoline output will climb to 100Bcf/day from 97Bcf/day. U.S. coal production will increase to 601M short tons by 2023, up from 599M in this year.

The U.S. electricity consumption will rise by 2.4% in the year 2021, and 0.5% in 2023.

EIA has also increased its projections for average national gasoline prices for next year and this year. It now anticipates that 2022 pump prices will average $4.07/gal, compared to $4.05 last month. The EIA is expecting 2023 prices to average $3.59/gal, instead of $3.57 as in its previous report.

Despite pump prices dropping sharply in the last eight weeks and falling below $4.00/gal for first time since March, the higher forecast is still possible.

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WTI crude oil futures fell 0.3% to $90.50/bbl Tuesday. This was due to Russia stopping crude flow along Druzhba Pipeline towards Hungary, the Czech Republic, and Slovakia. Front-month U.S. natural Gas settled +3.2% to $7.833/MMBtu on Tuesday.

The U.S. crude oil price dropped nearly 10% last week, falling to their lowest level in six months.