The US Energy Information Administration (EIA) released a report earlier this month that forecast US crude production for 2016 and 2017 will fall by less than previously expected, adding to growing fears that drillers are ready to increase production.

The EIA said 2016 crude production will fall by 650,000 barrels per day (bpd) to 8.77 million bpd, while 2017 crude output will fall by 260,000bpd to 8.51 million bpd.

Previously, the EIA forecast a decline of 700,000bpd to 8.73 million bpd for 2016 and a decline of 420,000bpd to 8.31 million bpd in 2017.

The revised forecast comes after Brent prices — the global benchmark — have rallied by as much as 23% since the start of August.

The EIA’s Adam Sieminski said in a statement: “The decline in US oil production this year and in 2017 is not expected to be as steep as in previous forecasts, because of improved drilling rig efficiencies and more rigs drilling.”

He added that oil inventories are expected to grow in the second half of 2016, limiting upward moves on oil prices.

The EIA has also raised its 2016 and 2017 US oil demand growth outlook, with 2016 expected to grow by 200,000bpd to 19.60 million bpd and 2017 to rise by 140,000bpd to 19.74 million bpd.