EIA: U.S. Permian Basin oil production will hit a new high in December

According to a new report from the U.
S.
Energy Information Administration (EIA), production in the Permian Basin is expected to reach record levels next month as the largest U.
S
.
shale oil field leads the recovery in U.
S.
domestic oil production.

In December, supply from the Permian Basin will increase to 4.
95 million bpd, which will exceed the record
set before the full-scale outbreak (March 2020), EIA reported.

The rebound in production in the Permian Basin was driven by low profitability costs, but other shale basins, such as Bakken, North Dakota and EagleFord in South Texas, are still below pre-COVID levels or are only up
slightly.

Overall U.
S.
oil production is still far from fully recovering, in large part because the global oil market is likely to be oversupplied next year; EIA forecasts that global oil supply will average 101.
4 million bpd in 2022, while global demand is expected to be 109.
0 million bpd
.