(Adds capital expenditure in paragraph 4 and U.S. fuel demand in paragraph 3)

Dec 12 (Reuters) - Suncor Energy on Thursday forecast higher oil and gas production in 2025, betting on continued energy demand growth.

The Canadian energy producer expects production to be between 810,000 and 840,000 barrels per day (bpd) next year, up from its 2024 estimate of 770,000 to 810,000 bpd.

The U.S. Energy Information Administration predicts increased fuel demand in the United States, Canada's largest crude market, due to an anticipated uptick in industrial activity.

Suncor also announced a reduction in its capital expenditure for 2025, lowering it to between C$6.1 billion ($4.31 billion)and C$6.3 billion, compared to the current year's forecast of C$6.3 billion to C$6.5 billion.

($1 = 1.4159 Canadian dollars)

(Reporting by Sourasis Bose and Vallari Srivastava in Bengaluru; Editing by Tasim Zahid and Shounak Dasgupta)

((Srivastava.Vallari@thomsonreuters.com))