Written by Neo Longwei
Oil prices are expected to “moderate” due to abundant supplies, according to the International Energy Agency.
In an interview with Bloomberg TV’s Jennifer Zabasaja, IEA Director-General Fatih Birol said of OPEC+’s production increase policy and slowing demand growth, “We don’t expect any major changes in the oil market because of increased production from the Americas.” “As a result of all these trends, we expect oil prices to be moderate in the coming days and weeks.”
He said speculation that the US and China would reach a trade deal this week would only “slightly push up” oil prices absent other major geopolitical events.
Birol said the oil market will be in surplus because output in the “Big Five” (the United States, Canada, Brazil, Guyana and Argentina) is outpacing demand growth, which he said is primarily driving China’s move away from heavy industry and combustion vehicles. Earlier this month, the IEA raised its forecast for a record oil glut in 2026.
Oil prices rose about 8% last week as new U.S. sanctions on Russia’s biggest producer raised concerns about material flows. Refiners in India, a major market for Russian oil, said they would halt purchases, and parts of China also hit the panic button.
— With assistance from Jennifer Zavasaja
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