Global Oil Market Faces Surplus Amid Weak Demand Growth

The International Energy Agency forecasts an oil glut in 2025 as Chinese demand falters and U.S. production increases.

The International Energy Agency (IEA) predicts a global oil surplus of over 1 million barrels per day in 2025 due to weak demand and rising production.
China's demand growth has significantly slowed, contributing to the bearish outlook, as the country shifts towards electric vehicles and cleaner energy sources.
The stronger U.S. dollar is putting downward pressure on oil prices, making commodities more expensive for buyers using other currencies.
OPEC+ has delayed plans to ease production cuts, but the potential unwinding of these cuts in 2025 could further depress oil prices.
The U.S. Energy Information Administration has raised its oil output forecasts, with U.S. production expected to reach a record 13.23 million barrels per day this year.