Crude oil supply risks have intensified again! EIA lowered its U.S. oil production forecast for next year

It is learned that on Wednesday (September 7) Eastern time, the US Energy Information Administration (EIA) released its monthly report, lowering its annual oil production target and raising the global demand outlook, which further increased supply risks
at a time when OPEC and its allies plan to cut production to defend crude oil prices.

The EIA said in the report that it lowered its forecast for next year's domestic crude production to 12.
63 million b/d, compared with 12.
7 million b/d
previously.
At the same time, the agency expects annual global crude oil consumption to increase by about 2 million barrels per day
by next year.

Since the outbreak of the Russia-Ukraine conflict, Russian crude oil has been widely banned and the market has faced unprecedented volatility, and this forecast has added another layer of concern
to the oil market.
The United States has become a major supplier of alternative crude oil, especially Europe, which has been hardest hit by the crisis
.
At the same time, OPEC+ also announced earlier that it would cut production
slightly in October.

Although oil prices have been high this year, U.
S.
shale producers have been curbing production growth, prioritizing dividends
to shareholders.
Barclays analysts even believe the practice will continue into next year
.

However, while EIA lowered its 2023 production forecast to its lowest level since February this year, it would still set a record for U.
S.
crude oil production for the year, after the annual record for U.
S.
crude oil production was set in 2019 at 12.
3 million b/d
.
The EIA also lowered its 2022 production forecast to 11.
79 million b/d for the third month in a row, compared to 11.
86 million b/d
previously.