IEA sees more supply flowing through oil market for the year

• 2025 global supply growth forecast seen at 1.6 mil bpd (up by 380k bpd)
• 2025 global demand growth forecast seen at 650k bpd for remainder of 2025 (down from 990k bpd in Q1)
• 2025 average oil demand growth forecast seen at 740k bpd (up by 20k bpd)
• 2026 average oil demand growth forecast seen at 760k bpd (previously 690k bpd)

The agency sees a further slowdown in oil demand growth, largely due to ongoing economic headwinds and rising EV sales. Adding to that is a further increase in supply as OPEC+ steps up production further. Not quite the positive outlook for the oil market as such. But at least looking to next year, IEA sees some better prospects compared to the month before.

This article was written by Justin Low at www.forexlive.com.