Fatih Birol foresees oil supply surplus in 2025

Fatih Birol, Executive Director of the International Energy Agency (IEA), expects an oil and gas supply surplus, which should help stabilize markets over the next two years, unless a major geopolitical escalation occurs.

Speaking at an event in Norway today, Nov. 26, Birol stated that oil and gas supplies will remain abundant this year and next, largely due to production from countries outside the OPEC+ alliance, according to Reuters.

This represents a headwind for OPEC+, which has postponed plans to scale back some of its production cuts for several months, with the possibility of further delays in its December meeting.

The Paris-based agency has already forecast that global oil supply will exceed demand in 2025, even if OPEC+ maintains its current production cuts, thanks to output from the US and other nations.