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Investing.com - Global oil supply is set to rise more than previously expected in 2025, the International Energy Agency said on Wednesday, citing a decision by a group of major producers to increase output.
The Paris-based group expects world oil supply to rise by 2.5 million barrels per day (bpd) in 2025, up from 2.1 million bpd previously forecast, in its latest monthly report, published earlier in the session.
The Organization of Petroleum Exporting Countries has undertaken a series of production hikes this year, as it seeks to unwind production cuts over the past three years, while also reclaiming a greater share of the oil market.
“Global oil supply growth has been revised up by 370 kb/d to 2.5 mb/d this year and by 620 kb/d to 1.9 mb/d in 2026, after the eight OPEC+ members subject to voluntary output reductions agreed on 3 August to raise production by another 547 kb/d in September, fully unwinding the 2.2 mb/d cuts agreed to in November 2023 since April,” the IEA said, in its report.
Despite higher OPEC+ production, non-OPEC producers will continue to lead world supply growth this year and next, according to the IEA.
The IEA also lowered its demand forecast this year, now seeing global demand rising by 680,000 bpd this year, down from 700,000 bpd previously forecast.
"The latest data show lacklustre demand across the major economies and, with consumer confidence still depressed, a sharp rebound appears remote," the IEA said.
“Consumption in emerging and developing economies has been weaker than expected, with China, Brazil, Egypt and India all revised down compared with last month’s.”