How is renewable energy expected to perform compared to oil demand?

The IEA report suggests that renewable energy is growing faster than any other major energy source, and the world is likely to build more renewable energy projects in the next 5 years than in the past 40 years, outpacing the growth in oil demand.

What criticism has the IEA faced regarding its oil demand forecast?

The IEA's scenario that includes continued growth in global oil demand until 2050 has been criticized for underestimating the pace of electric vehicle adoption, particularly in developing countries in Asia.

Home / Business and Economy / IEA Warns of 4M Barrel Daily Oil Glut by 2026 as Demand Lags

IEA Warns of 4M Barrel Daily Oil Glut by 2026 as Demand Lags

Q: What is the IEA's warning about the global oil market?

The IEA warns that the world is producing more oil than it can use, and by 2026 there could be a glut of 4 million excess barrels per day entering the market.

13 Nov

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Summary

Global oil supply to grow by 3.1M barrels per day in 2025
Renewable energy to double in next 5 years, outpacing oil demand
IEA's conservative oil demand scenario criticized for underestimating EV growth

IEA Warns of 4M Barrel Daily Oil Glut by 2026 as Demand Lags

According to the latest report from the International Energy Agency (IEA), the world is producing more oil than it can use, and by 2026, there could be a glut of 4 million excess barrels per day entering the market. This warning comes as the IEA's energy outlook report, which includes a scenario where global oil demand continues to grow until 2050, has faced criticism for underestimating the pace of electric vehicle adoption, particularly in developing countries in Asia.

The IEA, which was set up after the 1973 oil crisis to monitor global supplies, points to a slower-than-usual growth in the world's oil demand as the reason for the growing glut. The agency now expects global oil supply to grow by about 3.1 million barrels per day in 2025 and by 2.5 million barrels per day in 2026, each up by about 100,000 barrels per day from the previous month's forecast.