IEA Cuts 2026 Global Oil Glut Forecast as Demand Brightens

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Published: 3 days ago

The International Energy Agency (IEA) has revised its forecast for the 2026 global oil supply glut, trimming it to 3.84 million barrels per day (bpd) down 250,000 bpd from 4.09 million bpd previously. This marks the first reduction in the forecast since May due to stronger world economy and lower supply from nations under sanctions, particularly Russia and Venezuela. The IEA has also raised its global oil demand growth forecasts for 2025 and 2026, citing an improving macroeconomic outlook and subsiding tariff-related anxiety. World oil demand is expected to rise by 860,000 bpd in 2026, up 90,000 bpd from last month's outlook. Meanwhile, global oil supply is forecasted to increase by 2.4 million bpd next year, slightly lower than previously anticipated.

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