Plenty of Oil and Gas: IEA Predicts Comfortable Markets Ahead

The International Energy Agency (IEA) predicts a sufficient supply of oil and gas in the coming years, with current markets being stable unless geopolitical tensions escalate. By 2025, oil supply will surpass demand, challenging OPEC+ strategies despite continued production increases from outside producers like the United States.

The International Energy Agency (IEA) has forecast a comfortable supply of oil and gas for this year and next, contingent on the absence of major geopolitical crises. This assurance was shared by IEA head Fatih Birol during a conference held in Norway on Tuesday.

According to the IEA's assessment released on November 14, global oil supply is expected to exceed demand by 2025, even if OPEC+ maintains its current production cuts. This prediction is driven by rising outputs from countries such as the United States, which are offsetting sluggish global demand.

Such a scenario poses challenges for OPEC+—a coalition of OPEC members and allies, including Russia—as it navigates its approach to increasing output. Birol reiterated, "This year and next year, we expect comfortable oil markets unless a major geopolitical escalation happens."

(With inputs from agencies.)