Brent crude steadies at $72 as IEA warns of potential oil glut by 2025

Brent crude oil futures hovered around $72 per barrel on Thursday, weighed down by warnings from the International Energy Agency (IEA) about a potential oil surplus.

Brent crude steadies at $72 as IEA warns of potential oil glut by 2025

The IEA forecasted that global markets could face an oversupply of over 1 million barrels per day by 2025 if OPEC+ proceeds with planned production increases. This anticipated glut comes amid weakening Chinese oil demand, which has declined for six consecutive months and is projected to grow at just 10% of 2023 levels this year. A strong US dollar—now at a two-year high—has also made oil pricier for international buyers. Rising US, Brazil, and Canada output further add to supply concerns.

Oil prices down 11% since October; focus shifts to key OPEC+ meeting

Despite geopolitical risks, including tensions in the Middle East, oil prices have fallen by 11% since early October. Market attention is now shifting to the upcoming OPEC+ meeting, where production decisions could significantly impact the future direction of prices.