Crude oil prices were up to begin Wednesday as the U.S.’ Energy Information Administration (EIA) has lowered its crude production estimates for 2019 and 2020, alleviating some of the oversupply worries in the global oil market.
International benchmark Brent crude was trading at $66.94 per barrel at 0708 GMT with a 0.2 percent gain, after it closed Tuesday at $66.81 a barrel.
American benchmark West Texas Intermediate was at $57.25 a barrel at the same time — a 0.1 percent increase after ending the previous session at $57.18 per barrel.
The EIA said Tuesday in its Short-Term Energy Outlook report for March that it now expects crude oil production in the U.S. to average 12.3 million barrels per day (bpd) in 2019 and 13 million bpd in 2020.
The U.S.’ crude oil production was estimated to average 12.4 million bpd this year and 13.2 million bpd next year, according to the EIA’s report in February.
The U.S. crude output downward revisions is set to ease worries that the glut of supply in the global oil market, coming mostly from the U.S., will be less than anticipated.
Investors will closely watch the weekly change in the U.S.’ crude oil production and inventories that will be released by the EIA at 1430 GMT on Wednesday.