Overview of the oil market: supply will exceed demand in 2025

• Oil supply will increase by 2.5 million barrels per day in 2025.
• The demand forecast has been lowered due to reduced activity in the global economies.
• Oil prices have decreased following the publication of the IEA report.

This is reported by Asharq Al-Awsat, Asharq Al-Awsat.

The International Energy Agency (IEA) reported an increase in global oil supply in 2025, which will exceed demand. According to forecasts, supply will increase by 2.5 million barrels per day, which is higher than previously expected. This increase is linked to OPEC+'s decision to boost oil production, as well as increased supply from non-OPEC countries.

According to the IEA, oil demand will only increase by 680,000 barrels per day in 2025, which is a downward revision. The agency pointed to reduced activity in major economies, which negatively impacts demand. OPEC, for its part, raised its forecast for demand growth for oil in 2026 by 100,000 barrels per day, indicating improvements in economic conditions.

Oil prices have fallen following the publication of the IEA report, with Brent trading below $66 per barrel. Along with the data, supply could exceed demand by more than 3 million barrels per day next year. Regardless of the increase in OPEC+ output, non-OPEC countries will continue to maintain increased oil supply, particularly due to higher output in the USA, Canada, Brazil, and Guyana.

The situation in the market may change due to new sanctions against Russia and Iran, which could restrict supply from these countries. The USA has announced new sanctions against Iran, while the European Union has reduced prices for Russian oil.

Tags: Economy/Energy