The oil market faces a sizeable surplus next year amid ample supply and slowing demand growth, the International Energy Agency IEA said on Tuesday as it further lowered its demand growth estimate for 2024. Global oil demand is set to increase by just 862,000 barrels per day bpd this year, amid decelerating consumption growth in China, the agency said in its closely-watched Oil Market Report today.
The United States, Brazil, Guyana, and Canada are set to account for most of the increase, ramping up their combined production by over 1 million bpd both years, according to the IEA. This will more than cover expected demand growth, the agency says. In recent weeks, heightened concerns about oil supply security bump into a well-supplied market, the IEA said.