The International Energy Agency (IEA) revealed on Thursday that it was cutting its global oil demand growth forecast for 2024 to 840,000 barrels per day (bpd) in comparison to the previous forecast of 920,000 bpd. For 2025, it said it raised its outlook to 1.1 million bpd.
"Persistent overproduction from some OPEC+ members, robust supply growth from non-OPEC+ countries and relatively modest global oil demand growth leaves the market looking comfortably supplied in 2025," the report added.
Additionally, OPEC+ has postponed its voluntary production cuts until April at the earliest while producers outside of OPEC+ are expected to increase their output by about 1.5 million bpd in both 2024 and 2025, led by the United States, Brazil, Guyana, Canada and Argentina.