PARIS: Global oil supply reached a record high in August as OPEC+ and other producing nations significantly increased their production output.
The International Energy Agency reported that this increased production has created a looming market surplus that continues to keep oil prices in check.
Eight key OPEC+ members, including Saudi Arabia and Russia, have been gradually increasing production since April after maintaining output restrictions in recent years.
The cartel announced another production increase on Sunday, further contributing to the global supply growth.
Non-OPEC+ nations have also been raising their output, with production from the United States, Brazil, Canada, Guyana and Argentina reaching or approaching all-time highs.
While global oil demand also rose slightly in August, the Paris-based agency is projecting a supply surplus for the full year of 2025.
Investor sentiment toward oil remained strongly bearish as the prospect of looming oversupply dampened any positive price momentum.
The price of Brent crude oil, the benchmark international contract, averaged $67 per barrel in August, representing a $2 decrease from the previous month.
Global oil supply increased to a record 106.9 million barrels per day in August, according to the agency’s monthly oil market report.
The IEA now expects total oil supply to rise by 2.7 million barrels per day to reach 105.8 million barrels per day in 2025.
Global oil demand is forecast to increase to 103.9 million barrels per day in 2025, creating a supply surplus in the market.
Supply is expected to increase further to 107.9 million barrels per day in 2026, while demand is projected to reach 104.6 million barrels per day.
The International Energy Agency provides energy policy advice primarily to developed nations around the world. – AFP