- Oil prices are higher today, around $73.75, extending gains from yesterday
- Yesterday the EIA released its Short-Term Energy Outlook and revised its crude production forecast down by 120 MBbl/d to 170 Mbbl/d
- Permian Basin acquisitions to lower US output growth in 2024 (Reuters)
- In 2023, 39 private producers were acquired by public companies, which could change the growth profiles as those assets
- US oil output, driven by the Permian, reached a record of 12.93 MMBbl/d in 2023 and is expected to grow by just 170 Mbbl/d in 2024, according to the EIA
- Activity has fallen over the past year, with the number of rigs in the Permian falling to 311 from 350 a year ago, and the number of frac crews falling by 20 to 250
- Rystad’s Head of Shale Research said, “It all ties down to the industry being less interested in growth and more in generating positive cash flows, which they have now done successfully for a few years"
- Global oil demand to depend on India (BBG)
- According to the IEA, India will be a leading driver of oil demand growth through 2030
- Indian oil consumption is expected to grow by 1.2 MMBbl/d through 2030 to 6.6 MMBbl/d
- The country, which is already the world’s third-largest oil consumer, has been significantly boosting its refining capacity
