Global oil supply hit a record high in August as OPEC+ and other countries ramped up production, with a looming surplus keeping prices in check, the International Energy Agency said Thursday.
Eight key members of OPEC+ group, including Saudi Arabia and Russia, have been gradually increasing production since April after restricting output in recent years.
The cartel announced another production hike on Sunday.
Non-OPEC+ nations have also been raising their output, with the IEA saying production from the United States, Brazil, Canada, Guyana and Argentina was “at or near all-time highs”.
While demand also rose slightly in August, the Paris-based agency is projecting a surplus for 2025.
“Investor sentiment towards oil remained strongly bearish, as the prospect of looming oversupply dampened any positive price impetus,” the IEA said in its monthly oil market report.
The price of Brent oil, the benchmark international contract, reached $67 on average in August, $2 lower than the previous month.
Global oil supply “inched up” to a record 106.9 million barrels per day (mbd) in August, said the IEA, which advises mostly developed nations on energy policy.
The agency now expects total oil supply to rise by 2.7 million mbd to 105.8 million mbd in 2025, while demand is forecast to increase to 103.9 million mbd.
Supply is expected to increase further to 107.9 million mbd in 2026, with demand at 104.6 million mbd.
