US oil output growth could decelerate by more than 50% next year due to capital discipline or austerity in the Permian Basin, America’s shale-oil engine, according to the U.S. Energy Information Administration (EIA).
Supply to grow less than half a million barrels a day in 2021.
Output is seen reaching 13.7 million barrels a day next year.
Production is set to expand by 400,000 barrels a day, the weakest growth since at least 2017.
Ceteris paribus, slower US production growth could boost oil prices. Also, it could undermine America’s recent transition to being a net energy exporter, as noted by Bloomberg.