Global Oil Supply Set to Surpass Demand

The International Energy Agency predicts global oil supply could surpass demand by 600,000 barrels per day this year. This surplus may expand if OPEC+ extends its output cuts unwinding. The IEA has also revised its 2025 oil demand growth forecast, with Asia, mainly China's petrochemical sector, driving growth.

The International Energy Agency (IEA) projected on Thursday that global oil supply could exceed demand by approximately 600,000 barrels per day this year. This comes following a downward revision of its 2025 demand growth forecast.

According to the Paris-based agency, this surplus might increase by an additional 400,000 barrels per day if OPEC+ prolongs the unwinding of output cuts and if overproduction against quotas goes unchecked.

The IEA reduced its 2025 oil demand growth forecast by 70,000 barrels per day to roughly 1 million barrels per day. The growth is primarily attributed to Asia, particularly due to expansion in China's petrochemical industry.

(With inputs from agencies.)