The US Energy Information Administration (EIA) today raised its forecast for US crude output in 2020 to 13.2 million barrels per day (BPD) from 12.9 million BPD. That meant US crude production will top 13 million barrels for the first time next year.

The EIA cut its forecast for global oil demand growth in 2019 to 50,000 BPD, up by 1.49 million BPD from a year earlier. It also cut its forecast for global oil demand growth in 2020 by 50,000 BPD. However, a number of unfavorable factors are hitting US shale producers.

Currently, there were growing signs of a slowdown in shale oil production, which was a direct response to the industry's capital spending. Drilling has fallen sharply in recent weeks and production growth has slowed, with the EIA forecasting this week that US' shale oil output will rise 62,000 BPD in February, the lowest in nearly a year, after rising more than 100,000 BPD a month.