Despite global tensions, oil market looks to be well supplied through 2030

The global oil market is on track to remain well supplied through 2030, according to a new forecast from the International Energy Agency, even as geopolitical risks and trade tensions loom, The Wall Street Journal reports. 

While global oil demand is expected to plateau at 105.5 million barrels per day by decade’s end, production capacity is forecast to surge to 114.7 million barrels per day—outpacing demand growth by more than 2 to 1. 

Meanwhile, electric vehicle adoption and a shift away from oil in power generation are projected to curb demand, with peak consumption now expected by 2027. Despite short-term market jitters from Middle East tensions, the IEA says the supply outlook remains strong barring major disruptions. 

However, the agency’s outlook diverges from OPEC’s, which expects significantly higher demand growth. Brent crude hovered around $74 per barrel Tuesday, with WTI at $72.

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