The International Energy Agency lifted its 2026 global oil demand growth forecasts while trimming its supply growth predictions in its latest monthly oil market report on Thursday, implying a slightly narrower surplus for the market next year.

The Paris-based agency now expects global oil supply to exceed demand by 3.84 million barrels per day, compared with a 4.09 million bpd surplus estimated in its November report.

The IEA revised up its global oil demand growth forecasts for this year and next because of an improving macroeconomic outlook and "anxiety about tariffs having largely subsided".

Meanwhile, the agency expects supply growth to be slightly lower than previously anticipated in 2025-2026, as sanctions on Russia and Venezuela hit exports.

Source: Reuters