U.S. oil production is set to reach a new record high this year, with the Energy Information Administration predicting an average of 13.53 million barrels per day. Despite concerns of oversupply, output is expected to continue rising, leading to a potential drop in prices in the coming months.

The surge in U.S. production is attributed to higher output in July, particularly in the offshore Gulf region. President Donald Trump’s energy deregulation efforts have also boosted production, with offshore U.S. Gulf oil output expected to average 1.89 million bpd this year.

Global oil output forecasts have been raised by the EIA, driven by expectations of increased non-OPEC production. Despite OPEC+ raising production targets, the EIA believes further output increases may be limited as some members reach capacity constraints and aim to prevent rapid inventory buildups.

Read more at Yahoo Finance: EIA hikes US oil output forecast, says oversupply will slash prices