World To Amass "Major" Oil Surplus By 2030: IEA

The world is projected to experience a substantial oil surplus by 2030 due to increased production and the impact of the clean energy transition on demand, Agence France-Presse (AFP) reported, citing the International Energy Agency (IEA).

The recent developments underscore the ongoing shifts in both economic and energy landscapes.

The IEA's annual report predicts global oil demand will level off at 106 million barrels per day (bpd) by the decade's end, while supply capacity could reach 114 million bpd, resulting in an eight million bpd surplus.

IEA executive director Fatih Birol noted that as the post-pandemic economic rebound diminishes, clean energy transitions advance, and China’s economic structure evolves, global oil demand growth is slowing and is expected to peak by 2030.

Birol advised that oil companies should ensure their business strategies and plans are prepared for this impending surplus and the significant changes in the oil market dynamics.

These developments underscore the ongoing shifts in both economic and energy landscapes, with significant implications for inflation management and global energy strategies.