EIA expects the supply of liquid fuels globally will average 92.6 million b/d in the second quarter of 2020, down 7.9 million b/d year over year, APA-Economics reports citing EIA's monthly report.
The declines reflect voluntary supply cuts by OPEC+ and reductions in drilling activity in the United States because of low oil prices. Supply of oil fell by less than demand in the second quarter, and EIA expects supply to be slower to increase. In the forecast, the global supply of oil declines to 92.0 million b/d in the third quarter before rising to an annual average of 97.4 million b/d in 2021.
EIA expects OPEC to drive supply growth in 2021.