Jan 9 (Reuters) - Canadian Natural Resources (CNQ.TO) , opens new tab said on Thursday it expects production to increase 12% and capital spending to rise 13.5% in 2025, as it bets on higher demand amid tight oil supplies.

Canadian oil producers have projected higher production for 2025, betting on resilient demand for Canadian crude in the United States and international markets.

Fuel demand in the United States, the biggest destination for Canadian crude, is expected to rise in 2025 as industrial activity is likely to benefit from a cut in borrowing rates, according to the U.S. Energy Information Administration.

Canadian producers are also benefiting from the start-up of the Trans Mountain pipeline expansion earlier last year, which has nearly tripled the flow of oil to Canada's Pacific Coast from landlocked Alberta, boosted the price of Canadian crude and opened up market access to refineries in Asia and the U.S. West Coast.

Canadian Natural Resources said it was aiming to drill 361 net wells across its crude oil and liquids-rich natural gas assets, with a capital budget of C$6.15 billion ($4.28 billion) for the year, higher than the 2024 forecast , opens new tab of C$5.42 billion.

The company aims for annual average production of between 1.510 million and 1.555 million barrels of oil equivalent per day (boepd) in 2025, resulting in production growth of approximately 170,000 boepd or 12% over 2024 levels, based on the mid-point of the forecast.

($1 = 1.4384 Canadian dollars)

Sign up here.

https://www.reuters.com/business/energy/canadian-natural-resources-forecasts-higher-production-2025-2025-01-09/