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IEA Cuts 2026 Oil Surplus Forecast as OPEC Counters With Near-Balance View

Sanctions and unplanned outages have reduced supplies, prompting a smaller projected surplus.

Overview

  • The IEA’s December report now projects supply exceeding demand by about 3.84 million barrels per day in 2026, down from 4.09 million bpd in its prior outlook.
  • OPEC’s latest data point to a market that broadly matches 2026 demand, and OPEC+ plans to pause further production increases in the first quarter of next year.
  • Trafigura reiterates a warning of a potential “super glut” as long-planned projects, including in Brazil and Guyana, meet softer demand growth.
  • Brent hovered near $61 and WTI near $58 after a fresh slide, with prices briefly rebounding on U.S. moves to seize Venezuelan oil tankers that could constrain flows.
  • The IEA cites a recent halt in the supply surge, with output dips tied to outages in Kuwait and Kazakhstan and reduced Russian and Venezuelan exports, even as large volumes remain stored at sea.