More crude oil production but less gasoline consumption. The coming year is likely to see increased crude oil production in the U.S. because of production cuts made by Saudi Arabia and Russia.
So predicts the U.S. Energy Information Administration which forecast 2024 will also result in the lowest gasoline consumption in this country in 20 years.
The EIA said it expects global liquid fuels production to grow by 1 million barrels a day in the coming year.
“We expect OPEC+ production cuts will remain in place through the end of 2024 and offset non-OPEC production growth. EIA expects a slight decline in global oil inventories in early 2024,” declared the EIA.
In its November Short-Term Energy Outlook (STEO), EIA forecasts Brent crude oil prices will average about $93 per barrel in 2024, up by over $9 per barrel from this year. Risks of supply disruptions and price volatility are heightened amid potential conflict spreading in the Middle East.
In addition, EIA forecasts that U.S. motorists will consume less gasoline per capita in 2024, resulting in the lowest gasoline consumption in two decades.
“U.S. motorists are driving less because they aren’t commuting to work every day, newer gasoline-fueled vehicles are more efficient, and there are more electric vehicles on the road,” said EIA Administrator Joe DeCarolis. “Put those trends together with high gasoline prices and high inflation, and we find that U.S. motorists are using less gasoline.”