World oil market ‘lopsided’ as supply outpaces demand: IEA

PARIS: The world’s oil market is experiencing a period of imbalance as growing supply outstrips demand despite stronger deliveries to China, the International Energy Agency (IEA) said Thursday.

In its monthly oil market report, the organisation revised upwards its global oil supply estimate, saying it will exceed demand by more than four million barrels per day (bpd) in 2026.

“Global oil market balances are looking increasingly lopsided, as world oil supply is forging ahead while oil demand growth remains modest by historical standards,” the IEA said.

The body conceded, however, that there was much uncertainty potentially affecting such forecasts, including the economic repercussions of recent tariff turmoil, the US government shutdown and the impacts of the latest western sanctions on Russia, a major oil producer.