The International Energy Agency (IEA) believes that in 2026, world oil markets may face a record surplus. The reasons for this will be a slowdown in demand growth and an increase in supply.
This is reported by Bloomberg with reference to the IEA report.
According to the IEA, oil reserves will grow at a rate of 2.96 million barrels per day, exceeding even the average growth in 2020, when the world was experiencing the COVID-19 pandemic.
The IEA report states that this year and next, global oil demand will grow less than half as slowly as in 2023. At the same time, supply will continue to increase. Thus, the OPEC+ cartel has accelerated the resumption of suspended production.
"The oil market balance looks increasingly bloated, with forecast supply well exceeding demand through the end of the year and into 2026. It is clear that something needs to change to restore balance in the market," the IEA said.
This year, global oil consumption will grow by just 680,000 barrels per day, the weakest since 2019, amid disappointing demand in China, India and Brazil. The IEA expects oil consumption to increase by 700,000 barrels per day in 2026.
IEA analysts predict that global oil demand will stop growing by the end of this decade as countries transition from fossil fuels to electric vehicles.
As Ukrainian News Agency earlier reported, yesterday, August 12, the Foreign Intelligence Service of Ukraine said that in the first six months of this year, revenues from the russian oil and gas industry fell by 18.5%.
The day before, we wrote that the russian leadership was preparing for a scenario of oil prices falling to USD 40-60 per barrel, which would be a "shock" for the russian economy.
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