IEA warns oil supply will exceed demand in 2025
November 14, 2024
The API inventory update had crude oil stocks down 777,000 barrels gasoline up 312,000, and distillates were up 1.4 million barrels.
The International Energy Agency (IEA) warned that oil supply will exceed demand in 2025, even with OPEC+ production cuts, due to higher output from the US and other countries. The IEA slightly raised its 2024 demand growth forecast but kept its 2025 demand growth the same. With the outlook for slowing demand in China the current outlook is not bullish for prices.
Tom Kloza, the global head of energy analysis at OPIS said oil prices could fall to $30 to $40 dollars per barrel if OPEC+ unwinds its output cuts and does not have any kind of real agreement to rein in production.
The Kremlin said Russian President Vladimir Putin and Saudi Crown Price Mohammed bin Salman underscore the importance of continuing a “close coordination” within the OPEC+ group of oil producers during a phone call.
The average estimates for today’s DOE inventory update from the Bloomberg Survey are calling crude oil stocks up 96,000 barrels, gasoline up 200,000 barrels, and distillates up 903,000 barrels.