The world oil market will be comfortably supplied in 2025, the International Energy Agency (IEA) said, even after producer group OPEC+ extended oil supply cuts and a slightly higher than expected demand forecast.
The outlook from the IEA, which advises industrialised countries, points to continued headwinds for OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia. OPEC+ is seeking to begin reviving output in 2025 after years of cuts.
Oil demand growth has been weaker than expected this year in large part because of China. After driving rises in oil consumption for years, economic challenges and a shift towards electric vehicles are tempering oil growth prospects in the world's second-largest consumer.
Still, the IEA increased its 2025 global oil demand growth forecast to 1.1 million barrels per day (bpd) from 990,000 bpd last month, "largely in Asian countries due to the impact of China's recent stimulus measures," it said in its monthly oil market report.
China is seeking to boost the economy and will adopt an "appropriately loose" monetary policy next year, the first easing of its stance in some 14 years, the Politburo was quoted as saying on Monday.
At the same time, the IEA expects non-OPEC+ nations to boost supply by about 1.5 million bpd next year, driven by the United States, Canada, Guyana, Brazil and Argentina - more than the rate of demand growth.
