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Suncor Energy Inc on Monday forecast higher production and spending targets for fiscal year 2021, as the Canadian oil and gas producer bets on demand and prices to rebound from pandemic lows.

The company expects 2021 average production of 740,000 to 780,000 barrels of oil equivalent per day, about 10% higher than the midpoint of the forecast range for 2020.

It also set a capital program target of between $3.8 billion and $4.5 billion, compared with $3.6 billion to $4 billion this year.

North American oil and gas companies are restoring drilling of wells shut-in to counter a steep fall in prices earlier this year as the COVID-19 pandemic hammered fuel demand with U.S. crude prices dipping into the negative for the first time ever.

Suncor also said it expects to pay down debt of between $500 million and $1 billion and announced a $500 million share repurchase program for 2021.

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