BofA Uptick in non-OPEC Oil Supply May Create Market Surplus in 2025

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Oil Supply,Guyana. OPEC,Oil Demand

The oil market is bracing for a softer supply-demand balance, as highlighted in a recent report by BofA Global Research

seen by RigZone. The report points to an uptick in non-OPEC oil production, particularly from Brazil, Guyana, Canada, and the United States, which is expected to grow by approximately one million barrels per day in 2024 and by 1.6 million barrels per day in 2025. This increase comes as OPEC considers reintroducing additional barrels to the market later in the year, potentially adding to the surplus.

These figures suggest that the market could see a surplus of 700,000 barrels per day in 2025, leading to a significant build-up in both commercial and strategic oil inventories, the report suggests. The report also forecasts that Brent crude oil prices will average $86 per barrel in 2024 before declining to $80 per barrel in 2025, reflecting the anticipated softer market conditions. Adding to the complex picture, recent data points to weaker demand from China, a key oil importer.

 

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