Why Oil Traders Have Become So Pessimistic About 2025
- All three major agencies cut outright 2025 demand forecasts
- IEA and EIA see supply growth outpacing extra demand next year
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Even as oil prices swirl amid the turmoil gripping the Middle East, many traders have remained resolutely pessimistic about the market outlook for next year.
The bearishness — which could be derailed should a major escalation disrupt fuel flows — stems from a belief that supplies will exceed global demand in 2025, with increases from outside the Organization of Petroleum Exporting Countries playing a major role. That has been reinforced by all three main oil agencies paring back estimates for demand next year.