Commodities
Global Oil Glut Seen Expanding on Stronger Production Growth
- EIA forecasts larger crude surpluses this year and next
- Agency sees Russian flows not significantly hurt by sanctions
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The US expects bigger oil surpluses than it previously projected for this year and in 2026, driven by continued growth in American and non-OPEC production and projections that sanctions won’t likely dent Russian output.
World oil markets are expected to average a surplus of 1 million barrels a day in 2026, the Energy Information Administration said Tuesday, up from the 800,000 barrel-a-day surplus it projected in last month’s report. The forecast is twice as big as the glut the EIA expects this year, which also was revised up from its previous report.