IEA Lowers Oil Demand Growth Forecast for 2025 and 2026

The International Energy Agency (IEA) today raised its forecast for oil supply growth this year, following the recent OPEC+ decision to increase crude oil production. It also lowered its demand estimate, citing a significant slowdown in oil consumption in recent months.

The IEA lowered its forecast for global oil demand growth in 2025 to 700,000 barrels per day and lowered its forecast for oil demand growth in 2026 to 720,000 barrels per day.

The agency, which advises industrialized countries, said in its monthly report that it expects global crude oil supplies to rise by 2.1 million barrels per day in 2025, an increase of 300,000 barrels per day compared to previous forecasts. This follows the OPEC+ alliance’s decision in April to abandon its latest production cut and accelerate increases during May, June, July, and August, resulting in additional supply flowing into the market.