April WTI crude oil (CLJ24) Tuesday closed down -0.37 (-0.47%), and Apr RBOB gasoline (RBJ24) closed up +0.59 (+0.23%).
Oil prices were undercut Tuesday after the U.S. DOE Energy Information Administration (EIA), in its Short-Term Energy Outlook, forecasted that U.S. crude oil production in 2024 will rise +2.0% y/y to 13.19 million bpd, +0.7% higher than the previous projection of 13.10 million bpd. The EIA is predicting that U.S. oil production in 2025 will increase by +3.5% y/y to 13.65 million bpd, 1.2% higher than the previous forecast. Higher U.S. production will offset to some extent the OPEC+ production cuts. The EIA is forecasting a global oil deficit of 260,000 bpd this year, but a surplus of 360,000 bpd in 2025.
