IEA raises forecast for global oil demand growth in 2025

The International Energy Agency said on Thursday that the global oil market will enjoy abundant supplies in 2025, even after OPEC+ extends production cuts and expectations of slightly higher demand than expected.

The agency said its current forecast indicates a surplus of 950,000 barrels per day next year – equivalent to about 1 percent of global production – despite OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, extending production cuts until April 2025, according to Sky News.

Oil demand growth has been weaker than expected this year, partly due to China. After leading increases in oil consumption for years, economic challenges and a shift towards electric vehicles are reducing the prospects for oil growth in the world’s second-largest consumer.

However, the agency raised its forecast for global oil demand growth in 2025 to 1.1 million barrels per day from 990,000 barrels per day last month, saying in its monthly oil market report that this would occur “largely in Asian countries due to the impact of recent stimulus measures in China.”