Why Is There So Much Oil?
In this weekly documentary, Bloomberg Originals explores how the world got to this strange place of oversupply and what it means for the future.
Photo Illustration: Christian Capestany
In a world of multiple geopolitical flashpoints, from Venezuela to Ukraine and the Middle East, concern is always high regarding what conflicts (and potential conflicts) could mean for the price of oil. But if you step back and extend the timeline a bit, a longer-term narrative comes into view: Oil markets are actually oversupplied.
Both the International Energy Agency and the US government in December saw production exceeding consumption by just over 2 million barrels a day last year, with expectations the surplus would widen in 2026. In a world where oil is traditionally viewed as the hottest of commodities, how did we get to this point? In this weekly documentary, Bloomberg Originals explores why we are awash in cheap crude and what the glut means for the global economy—and the future.