Global oil markets could see a bigger surplus this year than previously projected, with supply growth outpacing demand by more than three to one, The Wall Street Journal writes.
The International Energy Agency says in its latest monthly report that it now expects global supply to rise by 2.5 million barrels a day in 2025—up from an earlier forecast of 2.1 million—driven largely by non-OPEC+ producers, though recent output hikes by OPEC+ have also contributed. Demand growth estimates were trimmed to 685,000 barrels a day this year, reflecting weaker-than-expected consumption in China, India and Brazil.
The report comes as Brent crude trades near $66 a barrel and West Texas Intermediate around $63, with market attention on President Trump’s meeting Friday with Russia’s Vladimir Putin in Alaska. Oil inventories rose for a fifth straight month in June to a 46-month high, fueled by higher volumes at sea and stockpile builds in China and the U.S. The IEA warns that slower economic growth and subdued consumer confidence make a sharp demand rebound unlikely.
