Oil demand next year will be higher than expected, IEA says

The International Energy Agency (IEA) has lowered its forecast for the oil market surplus next year. It expects demand to be higher than previously projected. The agency said this today in its regular monthly report on the market situation. It now forecasts a supply surplus of 3.84 million barrels per day, down from 4.09 million barrels per day in its November report.

The agency revised upwards its forecast for growth in global oil demand this year and next, mainly because of an improving macroeconomic outlook. It also noted that concerns about the impact of tariffs on international trade had eased. According to the agency, oil supply growth this year and next will be lower than previously expected because sanctions against Russia and Venezuela have hit exports.

The IEA expects global oil demand to rise by 830,000 barrels per day this year, and raised its forecast for demand growth next year to 860,000 barrels per day. The agency lowered its forecast for global oil supply growth for both this year and next. It now expects total supply to reach 106.2 million barrels per day this year, while supply next year will amount to 108.6 million barrels of oil per day.

The International Energy Agency is an intergovernmental organisation established in 1974 within the Organisation for Economic Co-operation and Development (OECD). Its creation was prompted by the oil crisis at the time, and the IEA primarily serves as an energy adviser to its member countries. Excluding associate countries, the agency has 31 members, including the Czech Republic and Slovakia.