The U.S. Energy Information Administration (EIA) has updated its energy outlook for 2025 and 2026, projecting stable natural gas production at 105.9 billion cubic feet per day in 2025 and slightly lower demand at 105.4 billion cubic feet per day in 2026, down from an earlier estimate of 106.4 billion. The EIA raised its forecast for the average price of West Texas Intermediate (WTI) crude oil to $65.22 per barrel in 2025, up from a previous estimate of $62.33, while lowering the 2026 price forecast to $54.82 from $55.58. Similarly, Brent crude prices are expected to average $68.89 per barrel in 2025, up from $65.97, but decline to $58.48 in 2026, down from $59.24. Despite a record U.S. crude oil output of 13.4 million barrels per day (mbpd), inventories are building, gas prices are falling, and ethane exports to China are increasing. The EIA projects a crude oil surplus of 1.07 mbpd in 2025, up from an earlier surplus estimate of 0.82 mbpd, and a surplus of 1.13 mbpd in 2026, compared to a previous forecast of 0.56 mbpd. U.S. crude production fell by 38,000 barrels per day (kbpd) month-over-month to 13.37 mbpd in June 2025, with May production revised down from 13.56 mbpd to 13.41 mbpd. Production is expected to reach 13.48 mbpd by December 2025 and decline slightly to 13.25 mbpd by December 2026. The EIA also noted that OPEC+ crude production increased by 340 kbpd to 41.77 mbpd in June 2025, while approximately 2.5 mbpd of supplies were offline in June, slightly higher than 2.41 mbpd in May. The outlook indicates a slowing growth in U.S. crude output due to volatile oil prices and diminishing drilled but uncompleted wells (DUCs), with drilling activity remaining subdued despite price fluctuations.