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Oil exploration on the rise, surplus until 2030, says AIE.

Oil will have a large surplus by 2030, says IEA.

Oil exploration   on the rise ! The slowdown in the spread of demand and the increase in supply have put global oil markets on the path to a large surplus this decade , according to a report released by the International Robustness Branch (AIE) this Wednesday (12/06).

Based on current policies and market trends, powerful demand from Asia’s fast- growing economies , as well as the aviation and petrochemical sectors, is expected to increase oil use in the coming years, the report concludes.

The increase will likely be offset by factors such as increased sales of electric automobiles, improvements in fuel efficiency in conventional vehicles, the reduction in the use of oil for electricity production in the Middle East and structural economic changes, according to the latest edition . from the IEA annual mid-range report, forward market report.

As a result, the report predicts that global demand for oil, including biofuels, will average just over 102 million barrels per day in 2023, and will stabilize at close to 106 million barrels per day by the end of this decade .

Oil supply will reach up to 114 million barrels/day

According to Xinhua Branch , in parallel, an increase in global oil production capacity is expected to outpace the spread of demand between now and 2030. Total supply capacity is expected to increase to almost 114 million barrels per day by 2030 , an impressive 8 million barrels per day above projected global demand. the report concludes.

This would result in levels of unused capacity never seen before, except at the height of the Covid-19 lockdowns in 2020. Unused capacity at such levels could have significant consequences for oil markets – including oil-producing economies. OPEC and other countries. regarding the US shale oil industry, according to the report.

This year, we expect demand to increase by around 1 million barrels per day,” said IEA executive director Fatih Birol. “The projections in this report, based on the most recent data, show a large supply surplus emerging this decade , suggesting that oil companies may want to make sure their strategies and business plans are prepared for the changes that are occurring. ,” he added.

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