In this week's news, oil production in the Alberta region hit by wildfires slowly starts up again and the EIA updated its crude price forecasts
Oil production in the Canadian oilsands area shut down last week because of wildfires, Alberta’s premier, Rachel Notley, told the Associated Press.
Notley says the massive oilsands mines north of Fort McMurray have not been damaged. Suncor and Shell Canada both have said they resumed production, but at reduced rates after seven-day closures.
The wildfire that broke out a week ago has forced as much as one-third of Canada’s oil output offline and was expected to impact an economy already hurt by the fall in oil prices. Alberta’s oilsands have the third-largest reserve of oil in the world behind Saudi Arabia and Venezuela.
EIA Revises Crude Forecasts for 2016, 2017
The U.S. Energy Information Administration revised its short-term forecast on crude oil prices, pushing up its estimates for Brent crude to average $41 per barrel in 2016 and $51 in 2017.
The fresh projections, announced May 11, are higher by $6 for 2016 and by $10 for 2017, compared to last month’s forecast, the EIA said.
West Texas Intermediate prices are forecast to average slightly less in 2016 and to be the same as the benchmark grade in 2017.
Crude oil production in the U.S. averaged 9.4 million barrels per day in 2015 and production is forecast to average 8.6 million bpd in 2016 and 8.2 million bpd in 2017.