The International Energy Agency (IEA) has reported that global oil supply reached a record high in August, driven by increased production from OPEC+ countries and other nations. According to the IEA, the global oil supply rose to 106.9 million barrels per day (mbd) in August, with key OPEC+ members, including Saudi Arabia and Russia, gradually increasing production since April. This trend is expected to continue, with the cartel announcing another production hike on Sunday.

Non-OPEC+ countries, such as the United States, Brazil, Canada, Guyana, and Argentina, have also been ramping up their output, with production levels at or near all-time highs. While demand for oil also rose slightly in August, the IEA is projecting a surplus for 2025, which is likely to keep prices in check. The price of Brent oil, the international benchmark, averaged $67 in August, down $2 from the previous month.

The IEA attributes the bearish investor sentiment towards oil to the prospect of looming oversupply, which has dampened any positive price impetus. The agency 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. In 2026, supply is expected to increase further to 107.9 million mbd, with demand at 104.6 million mbd.

The rise in global oil supply is significant, as it indicates a shift in the balance between supply and demand. The IEA’s projections suggest that the surplus will continue to grow, which may lead to further downward pressure on prices. As the global energy landscape continues to evolve, the IEA’s reports will be closely watched by industry stakeholders and investors alike. With the recent production hike and projected surplus, the oil market is likely to remain volatile, and the IEA’s forecasts will be key to understanding the future direction of the market.