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US Oil Output Growth not Expected Until Q2 2024: Energy Aspects

OIL

Growth in US oil production is unlikely until the second half of the year according to Amrita Sen at Energy Aspects.

  • Output isn’t recovering quickly after the freeze-offs that shut in wells earlier this year.
  • “I don’t think you’re going to see any kind of incremental supply growth from the US in the first half of the year.”
  • A growth of about 400kb/d is forecast for 2024 with supply increases set for the second half of the year.
  • There is however downside risk to the growth forecast after the surprise scale of US supply growth increase last year.
  • Higher oil market prices have been boosted by geopolitical tensions and with a bit of a shock from a cut to Mexican exports.

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