Daniel Yergin, vice chairman of IHS Markit, said that US oil production should continue to increase next year, and is likely to grow by 900,000 barrels per day.
Amid the coronavirus pandemic, which caused a sharp drop in demand, US oil companies were forced to cut production in 2020. According to official data, in 2020, oil production in the United States decreased to 11.28 million barrels per day compared to 12.29 million barrels per day in 2019. Oil production is projected to reach 11.18 million barrels this year and rise to 11.85 million barrels next year.
"The US is increasing oil production again, challenging OPEC+," Yergin said, adding that the US Energy Secretary is in favor of further production growth, as the Biden administration is deeply concerned about the level of inflation and its political consequences.
As for the prospects for prices, Yergin expects that oil will continue to trade in the range of $ 65 - $85 dollars per barrel. However, he pointed out the potential for prices to rise to $100 in the event of any serious geopolitical shocks.