Energy

OPEC expects balanced oil market in 2026, moving further away from deficit projection

Photo caption: OPEC logo

 

World oil supply is expected to match demand next year in ​a reflection of the wider OPEC+ group’s production ‌increases, an OPEC report showed on Wednesday, marking a further shift ‌from its earlier projections of a supply deficit in 2026.

OPEC+, which groups the Organization of the Petroleum Exporting Countries, Russia and other allies, has raised its output targets by around ⁠2.9 million ‌barrels per day – or around 2.7% of global supply – since April.

It ‍plans to pause production hikes in the first quarter of 2026 amid widespread predictions of an oversupply.

In a monthly report on Wednesday, OPEC ​said the world economy’s growth trend remained firm.

While demand ‌is seen as steady, OPEC said in the report that OPEC+ in October cut output by 73,000 bpd to 43.02 million bpd, despite the group’s output hike agreement for the month, led by a drop in ⁠Kazakhstan.

Expected demand for OPEC+ crude at ​43.0 million bpd in 2026 implies ​that the world market will see a marginal surplus of 20,000 bpd if the wider group keeps ‍pumping at October’⁠s rate, according to a Reuters calculation based on the report.

Last month’s report had projected a deficit ⁠of 50,000 bpd, and the September report pointed to a shortfall ‌of 700,000 bpd.

=== Reuters ===

 

Related posts

Nigeria ready for business, Tinubu tells global energy industry players

Editor

Oil security vital for all, as OPEC backs IEA

Editor

IEF17 affirms shared responsibility for energy security and resilience

Editor

Nigeria’s oil rigs count stagnates, despite February crude production growth

Editor

National grid may collapse with 6,000MW power — NYCN

Editor

NLNG positions AI as a game-changer for efficiency and sustainable energy

Editor