The International Energy Agency (IEA) has projected that the global oil market will remain well-supplied in 2025, barring any major disruptions. Despite ongoing geopolitical tensions, particularly in the Middle East, the agency believes that supply growth will be sufficient to meet demand in the coming years.

According to the latest IEA report, world oil demand is expected to rise by 720,000 barrels per day this year, while supply is forecast to increase by 1.8 million barrels per day. The agency attributes this stability to increased production from key oil-producing nations, including the United States, Canada, Brazil, and Guyana.

The report also highlights shifting market dynamics, with China’s oil consumption expected to peak in 2027 due to the rapid adoption of electric vehicles and alternative energy sources. Meanwhile, the OPEC+ alliance has begun unwinding production cuts, reshaping global supply trajectories.

Despite these developments, the IEA warns that geopolitical risks and trade tensions could still pose challenges to market stability. However, in the absence of major disruptions, the agency remains optimistic about the medium-term outlook for oil supply security.