EIA Bullish on US Crude Output

The US Energy Information Administration continues to expect US production to rise over the next two years and cross the 10 million barrels per day threshold in November 2018. It sees output averaging 9.35 million bpd in 2017, up 20,000 bpd from last month's outlook, and 9.91 million bpd in 2018, up 10,000 bpd from last month, EIA said in its Short-Term Energy Outlook, Platts reported. US crude production increased by a more modest 1% to 9.43 million bpd, compared with 9.32 million bpd in June, the report said. The agency expects OPEC output to average 32.53 million bpd in 2017 and 32.96 million bpd in 2018. Higher production of light sweet crude from Libya, Nigeria and the US in July could be contributing to a price squeeze between light and medium crudes, the report added. Libyan crude output jumped 19% to 1.01 million bpd in July, from 850,000 bpd in June. Nigerian production increased 6% to 1.66 million bpd in July, from 1.56 million bpd a month earlier, EIA said.