Global Oil Oversupply 2025: How Energy Markets Are Facing a New Crisis
The global energy market is going through a major shake-up. The International Energy Agency (IEA), in its October 2025 report, has issued a strong warning — the world could face a serious oil oversupply crisis in the next two years. In simple terms, the world is producing more oil than it can consume. This imbalance is not only pulling prices down but also creating serious challenges for the economies of many oil-producing nations. Since the start of 2025, oil prices have been falling — but now that decline is speeding up. Analysts say that if production continues at this pace, the market could see a surplus of nearly 4 million barrels per day by 2026, which would be the largest in a decade. ⚖️ Global Supply and Demand Are Out of Sync According to the IEA, global oil supply has increased by nearly 3 million barrels per day in 2025, while demand has grown by only about 700,000 barrels per day. This clearly means oil is being produced faster than it’s being sold. Because of this ga...