The U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC) have reduced their outlooks for global oil production this year as Covid-19 poses the potential to further suppress demand and pricing.  

Crude Oil Futures Prices

In the monthly Short-Term Energy Outlook (STEO) issued on Tuesday, EIA researchers estimated U.S. oil output this year would average 11.3 million b/d, down by 370,000 b/d from a forecast issued only one month ago. In 2019, domestic oil production averaged 12.2 million b/d. Production in 2021 is now forecast to be around 11.1 million b/d. 

Recently released data showed average domestic production in May was 1.2 million b/d lower than initially forecast, “indicating more extensive production curtailments than previously...