Crude oil futures rose for a third day as U.S. production this year is expected to grow less than expected, easing worries that the market is oversupplied.
The U.S. pumped a record 13.3 million barrels per day of crude oil in December, but output is not expected to surpass this level until early 2025, according to estimates from the Energy Information Agency.
On balance, domestic oil output is expected to grow by 170,000 barrels per day this year, down significantly from the EIA's previous forecast of 290,000 bpd.
U.S. oil output has raised worries among traders that the market is oversupplied as China's economy and crude demand softens.
But the world will face a crude oil supply deficit of 120,000 barrels per day this year, according to EIA estimates.
Persons:
Brent, Vicki Hollub, Hollub, Antony Blinken
Organizations:
The West Texas Intermediate, Energy Information Agency, Occidental Petroleum, CNBC, Iranian
Locations:
The, U.S, Gaza, Jordan