IEA Ups Global Oil Demand Forecast Amid Narrowing Surplus

The International Energy Agency (IEA) has increased its 2026 global oil demand growth forecasts, suggesting a narrower surplus in the market for this year. The IEA now anticipates a rise of 930,000 barrels per day, leading to a smaller surplus than previously expected.

The International Energy Agency (IEA) updated its global oil demand growth forecasts for 2026, indicating a slight narrowing in this year's market surplus.

According to the revised data, the IEA expects a 930,000 barrels per day increase in demand for this year, an adjustment from its previous forecast of 860,000 barrels per day. This revision suggests that the global oil supply will outstrip demand by 3.69 million barrels daily, based on calculations by Reuters—a reduction from the 3.84 million barrels per day surplus projected in December.

The current market conditions, characterized by substantial surpluses, have provided some stability in prices, remarked the agency in its monthly oil market report.

(With inputs from agencies.)