IEA's Updated Oil Forecast: Supply Surge Amid Tepid Demand

The International Energy Agency (IEA) has raised its oil supply growth forecast for the year, influenced by OPEC+'s production increase. Conversely, the agency has reduced its demand expectations, citing weak demand in major economies. The IEA now predicts a world oil supply rise of 2.5 million barrels per day by 2025.

The International Energy Agency (IEA) has revised its oil supply growth forecast for this year, announcing an increase following the recent decision by OPEC+ to raise production levels. This adjustment comes alongside a reduced demand forecast, attributed to subdued demand across major economies.

In its latest report, the IEA disclosed that it expects the global oil supply to grow by 2.5 million barrels per day by 2025, up from an earlier prediction of 2.1 million barrels per day. The decision reflects the current dynamics within the oil market, shaped by fluctuating production strategies and economic conditions.

The agency's updated outlook underscores a significant divergence between supply and demand, highlighting the complex landscape global oil markets face as they navigate OPEC+'s decisions and varied economic recovery trajectories.

(With inputs from agencies.)