IEA Monthly Report: OPEC+'s decision has reduced potential supply glut

On December 12, Jinshi Data reported that the International Energy Agency (IEA) stated today that the recent decision by OPEC+ member countries to postpone planned production increases has ‘significantly reduced’ the potential supply glut for next year. Nevertheless, IEA indicates that due to continued production surpluses in some OPEC+ member countries, strong non-alliance supplies, and moderate global oil demand, the oil market in 2025 may still face a severe oversupply. IEA estimates that even if all OPEC+ production cuts remain unchanged, next year’s supply will exceed demand by about 950,000 barrels per day. IEA states that if OPEC member countries start to increase production as planned from April, the supply surplus will increase to 1.4 million barrels per day.