The Oil Surplus will be just higher than expected next year. That is what the International Energy Agency (IEA) predicts in a new report on Thursday. Accordance to the IA, this is due to the decision of oil alliance opec+ to increase production.
OPEC+ REACHED an Agreement on Pumping Oil in October on Sunday. The cartel decided to increase production again after Previous Increases in May, June and July.
Accordance to the ie, this will result in a significant surplus or oil. In Addition to More Supply, there will also be Slightly More Demand for Oil Worldwide, The Agency Predicts.
Because demand is only slightly highher, The Iea Says That Supply in 2026 Will Be 3.31 Million Barrels Greater Than Demand. That is approxroximately 360,000 barrels per day more than the agency predicted a months ago. That would be a record surplus.
The Production Increase from OPEC+ Was much Lower Than Previous Increases. For Example, in August the cartel agreed to increase production by more than 500,000 barrels per day.
Countries Outside OPEC+ Will also Pump More Oil
Oil Countries Outside the Alliance, Such as the United States, Brazil, Canada and Guyana, Will also Jointly Increase Their Production by 1.4 Million barrels per day this year. Accordance to the ie, this is about twice the expected increase in Global Demand for Oil. The Agency Expects Countries That Are Not Members Of Opec+ To Increase Their Production by More Than One Million Barrels per day Next Year.
The IEA Expects A Global Surplus of Approximately Four Million Barrels per day in the First Half of 2026. Accordance to Market Experts, The Extra Production May Lead to An Oil Surplus Later This Year. If Oil Becomes Cheaper, this will also be reflected at the Pump. Other factors also play a role in this, such as taxes and the pricing policy of gas stations.