Global oil production in August 2022 reached 101.26 million barrels oil equivalent per day (MBOEPD).
This production capacity is the highest level since the beginning of 2020. The upward production trend is projected to continue until the end of 2022, as shown in the graph.
This projection was presented by the U.S. Energy Information Administration (EIA) in its September 2022 edition of the Short-Term Energy Outlook report.
According to EIA data, the increase in production in August 2022 was influenced by the improved performance of major oil producers, such as the United States, Canada, Russia, China, member countries of the Organisation for Economic Co-operation and Development (OECD), and the Organization of the Petroleum Exporting Countries (OPEC).
Along with this, the EIA projects that global oil prices will fall below US$100/barrel in the near future.
"In our forecast, the average Brent crude oil price will reach US$98 per barrel in the fourth quarter of 2022 and US$97 per barrel in 2023," the EIA stated in its report.
However, the EIA notes that this projection is influenced by uncertainty due to various global factors, such as the continuation of the Russian invasion of Ukraine, the impact of international sanctions on Russian oil production, and OPEC+ production policies.
"The possibility of disruptions to oil supply, as well as slower-than-expected oil production growth, could potentially increase oil prices," the EIA explained.
"On the other hand, the possibility of slower-than-expected economic growth creates the potential for lower oil prices," it further explained.