Analysts don’t project big change in 2025 US production despite administration change
November 11, 2024
The Baker Hughes Rig Count said that oil rigs were unchanged holding at a total of 479 oil rigs.
The Biden administration said on Friday it has bought its last batch of oil for the SPR after selling a record amount from the facility in 2022 to counter fuel prices that had risen after the Russian invasion of Ukraine. The US has bought 59 million barrels in total after the 180 million barrel sale. The funds to repurchase oil have for the SPR now been spent,
In China inflation slowed in October, and the produce prices dropped more, leading to concerns about deflation and weaker economic growth. This news and along with China’s recent stimulus measures that have been underwhelming are unlikely to increase their oil demand or imports, and this has put sell pressure on energy prices. .
Some traders think that oil production could increase with the new administration, but analysts do not see any big changes until 2025. US production has been near record highs for some time now so a ramp up would take some time.
One of the other expectations is that new US tariffs might reduce oil supply from countries like Venezuela and Iran and this has offered support to prices.