Canadian oil output to rise 8.3% this year: U.S. energy department10/10/2012
The U.S. Energy Department reduced its crude-oil price projection for 2012 amid speculation that non-OPEC output will increase, leading to higher inventories.
West Texas Intermediate oil will average $95.55 a barrel this year, down from the September forecast of $95.66, the departmentís Energy Information Administration said in its monthly Short-Term Energy Outlook. WTI will average $92.63 in 2013, unchanged from last monthís report.
Crude for October delivery rose 40 cents, or 0.4%, to $92.79 a barrel at 12:26 p.m. on the New York Mercantile Exchange. Futures touched $93.66 Wednesday, the highest intraday level since Sept. 21. Prices are down 6.1% this year.
ďThe EIA expects the oil market to loosen in the fourth quarter of 2012 as global fuels consumption falls from its seasonal peak and output from countries outside of the the Organization of Petroleum Exporting Countries recovers,Ē the report showed.
Global production of crude oil and liquid fuels will rise 2.4% from last year to 89.17 million barrels a day in 2012, up from the September estimate of 89 million. The biggest area of non-OPEC growth will be in the U.S. and Canada.
U.S. output will climb 7.5% to 10.9 million barrels a day this year and 5 percent to 11.44 million in 2013, the report showed. Canadian production is projected to increase 8.3% to 3.9 million in 2012 and 4.9% next year to 4.09 million.
Members of the Organization of Petroleum Exporting Countries will produce 36.64 million barrels a day this year, the department said. Last monthís forecast was 36.5 million.
OPEC pumped 30.85 million barrels of crude oil a day in September, down 1.3 percent from 31.25 million in August, data showed. Saudi Arabia, the groupís biggest producer, pumped 9.8 million barrels of crude a day in September, down from 10 million the previous month. OPECís non-crude oil liquids output was 5.72 million barrels a day last month.
The EIA left its forecast for global oil consumption this year unchanged at 89.09 million barrels a day. Demand will be 0.9 percent higher than last yearís average of 88.3 million. World consumption will climb 1 percent to 90.01 million barrels in 2013.
U.S. oil consumption will average 18.67 million barrels a day in 2012, unchanged from last monthís forecast. Next year demand is projected to climb to 18.77 million.
Regular gasoline, averaged nationwide, will average $3.65 a gallon at the pump this year, up from an estimate of $3.64 in September, the EIA said.