Global oil supply to outpace demand in 2025
Exploration and production companies are hesitant to commit further investment, citing the uncertainty surrounding the recent petroleum policy changes. photo: file
The supply of oil and gas will be plentiful, with oil markets being "comfortable" this year and next unless major geopolitical escalation happens, the Head of the International Energy Agency (IEA) Fatih Birol told a conference in Norway on Tuesday.
Global oil supply will exceed demand in 2025 even if OPEC+ cuts remain in place, the IEA said on November 14 as rising production from the US and other outside producers outpace sluggish demand.
The prospect of excess supply is a headwind for OPEC+, which comprises the Organisation of the Petroleum Exporting Countries and allies such as Russia, in its plan to start raising output. "This year and next year, we expect comfortable oil markets unless a major geopolitical escalation happens," Birol said. "There will be plenty of oil and gas." Oil prices fell more than $2 a barrel on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a deal to end the conflict.