2025 world oil demand growth forecast seen at 790,000 bpd (previously 710,000 bpd)2026 average world oil demand growth forecast seen at 770,000 bpd (previously 700,000 bpd)2025 world oil supply seen rising by 3.1 mil bpd (previously 3.0 mil bpd)2026 world oil supply seen at 2.5 mil bpd (previously 2.4 mil bpd)With supply continuing to outpace demand, IEA says that this will lead to a situation in 2026 where total oil supply will be 4.09 mil bpd higher than total demand. That is higher compared to their previous forecast of a surplus of 3.97 mil bpd. Supply glut.
This article was written by Justin Low at investinglive.com.
đź’ˇ DMK Insight
Rising oil demand forecasts signal potential price pressures ahead for crude markets. The upward revision in 2025 and 2026 demand growth—now at 790,000 bpd and 770,000 bpd respectively—could tighten supply dynamics, especially with supply only increasing by 3.1 million bpd in 2025. Traders should watch for how these forecasts play into OPEC’s production strategies and any geopolitical developments that could disrupt supply. If demand continues to outpace supply, we might see a bullish trend in oil prices, especially if technical levels around recent highs hold. Conversely, if the market perceives these forecasts as overly optimistic, we could see a pullback. Keep an eye on the $80 per barrel mark as a psychological level; a sustained breach above this could trigger more aggressive buying from institutional players. The real story is how quickly these demand forecasts translate into actual consumption, which could lead to volatility in related markets like energy stocks and ETFs. Watch for any adjustments in inventory reports that might signal shifts in this balance.
đź“® Takeaway
Monitor the $80 per barrel level closely; a sustained breach could indicate bullish momentum in oil prices amid rising demand forecasts.






