The world faces a record glut of oil next year as a Saudi-led cartel ramps up production – just as global demand slumps. On Wednesday, the International Energy Agency (IEA) said oil markets looked “ever more bloated” as supply “far eclipses” demand, with the Opec+ cartel of oil-producing countries – led by Saudi Arabia – ramping up production.
Slashing its forecast for orders growth, the IEA predicted demand for an extra 680,000 barrels a day in 2025 – the lowest rate since the aftermath of the global financial crisis in 2009, barring the pandemic.
The sluggish demand clashes with a surge of production from Opec. The IEA said Opec’s push to boost global oil supply would mean an extra 2.5 million barrels per day this year and 1.9 million barrels a day in 2026 – around 400,000 to 600,000 barrels higher than it previously expected.
Weaker-than-expected demand in China, India and Brazil in recent months is expected to weigh the most on global orders. The IEA said demand growth would hit 700,000 barrels a day in 2026 – down from estimates of 720,000 last month.
“The latest data show lacklustre demand across the major economies and, with consumer confidence still depressed, a sharp rebound appears remote,” the IEA said.
“Consumption in emerging and developing economies has been weaker than expected, with China, Brazil, Egypt and India all revised down compared with last month’s report.”
Full story World faces record glut of oil next year as Opec cartel floods markets
Share this:
