By James Thornhill
There are grounds for optimism on that front. The U.S. Energy Information Administration slashed its oil output forecast by almost 10%, saying it now expects the nation to pump an average of 11.8 million barrels a day in 2020. The 2021 estimate was cut to just over 11 million. The country is currently producing 13 million barrels a day.
The industry-funded American Petroleum Institute reported a 11.9 million barrel increase in weekly nationwide crude stocks, according to people familiar with the matter. That’s above analyst expectations for a 9.25 million barrel rise. The industry group also reported a 6.8 million barrel jump in oil stocks at the Cushing, Oklahoma hub, which would be the largest in data going back to April 2004 if the EIA confirms that in its report Wednesday.
Exxon Mobil Corp. plans to slash its spending by $10 billion — more than any other supermajor oil explorer has cut to weather the unprecedented market collapse — and yet its production in North America’s biggest shale region is still forecast to rise.