Oil Glut on the Horizon: Global Surplus Surges Ahead

The International Energy Agency (IEA) predicts a significant global oil surplus next year due to increasing oil production amidst slowing demand growth. OPEC+, along with non-OPEC producers, is boosting output while demand growth remains modest. Global inventories continue to rise, with oil stocks reaching unprecedented levels.

An impending oil surplus looms over the global market as production ramps up, OPEC+ and rivals lift output, and demand growth slackens, according to the International Energy Agency's (IEA) recent report.

The IEA forecasts a massive surplus next year, estimating an excess of 4.09 million barrels per day (bpd). This comes as oil supply surges by 3.1 million bpd in 2025 and 2.5 million bpd next year. Saudi Arabia and Russia are key contributors to this increase. Despite sanctions, Russian exports have persisted.

Further contributing to this imbalance, global oil inventories have reached their highest since July 2021, driven by a spike in waterborne oil stocks. The IEA's data indicates continued growth in global inventories, posing questions about future market stability.

(With inputs from agencies.)