Latest news with #USShale
Arab News
15-05-2025
- Business
- Arab News
IEA forecasts slowdown in global oil demand growth for the rest of 2025
LONDON: The International Energy Agency said on Thursday economic headwinds combined with record sales of electric vehicles will reduce global oil demand growth to 650,000 barrels per day for the remainder of 2025. That marks a slowdown from the 990,000 bpd the IEA measured for demand growth over January-March. 'Increased trade uncertainty is expected to weigh on the world economy and, by extension, oil demand,' the IEA said in its May oil market report. The IEA now expects global demand growth to average 740,000 bpd overall this year, an upward revision of 20,000 bpd on the month because of higher expected economic growth and lower oil prices supporting consumption. It sees demand growth then averaging a similar 760,000 bpd in 2026. The Paris-based watchdog hiked its supply growth forecast by almost 400,000 bpd on the month to 1.6 million bpd in 2025 as expectations of higher output from Saudi Arabia offset a predicted slowdown in US shale oil output in a lower oil price environment. Saudi Arabia accounts for almost all of the hike in the IEA's 2025 supply growth forecast, the IEA said, as it is the only country with room to add barrels back to the market based on current production levels. The OPEC+ group agreed a second monthly accelerated output increase for June at its last meeting. 'Based on continued price weakness, we expect more activity cuts over the coming quarters,' the IEA said of US shale, having cut its US shale forecast by 40,000 bpd for 2025 and 190,000 bpd for 2026. In its own monthly oil report on Wednesday, the Organization of Petroleum Exporting Countries trimmed its forecast for oil supply growth from the US and other producers outside the wider OPEC+ group for 2025. A sharp rise in supply, considerably outpacing demand growth, will force oil storage levels higher by an average of 720,000 bpd this year, the IEA said, after stocks declined on average by 140,000 bpd last year.
Zawya
15-05-2025
- Business
- Zawya
IEA forecasts slowdown in global oil demand growth for the rest of 2025
LONDON - The International Energy Agency (IEA) said on Thursday economic headwinds combined with record sales of electric vehicles will reduce global oil demand growth to 650,000 barrels per day for the remainder of 2025. That marks a slowdown from the 990,000 bpd the IEA measured for demand growth over January-March. "Increased trade uncertainty is expected to weigh on the world economy and, by extension, oil demand," the IEA said in its May oil market report. The IEA now expects global demand growth to average 740,000 bpd overall this year, an upward revision of 20,000 bpd on the month because of higher expected economic growth and lower oil prices supporting consumption. It sees demand growth then averaging a similar 760,000 bpd in 2026. The Paris-based watchdog hiked its supply growth forecast by almost 400,000 bpd on the month to 1.6 million bpd in 2025 as expectations of higher output from Saudi Arabia offset a predicted slowdown in U.S. shale oil output in a lower oil price environment. Saudi Arabia accounts for almost all of the hike in the IEA's 2025 supply growth forecast, the IEA said, as it is the only country with room to add barrels back to the market based on current production levels. The OPEC+ group agreed a second monthly accelerated output increase for June at its last meeting. "Based on continued price weakness, we expect more activity cuts over the coming quarters," the IEA said of U.S. shale, having cut its U.S. shale forecast by 40,000 bpd for 2025 and 190,000 bpd for 2026. In its own monthly oil report on Wednesday, the Organisation of Petroleum Exporting Countries (OPEC) trimmed its forecast for oil supply growth from the U.S. and other producers outside the wider OPEC+ group for 2025. A sharp rise in supply, considerably outpacing demand growth, will force oil storage levels higher by an average of 720,000 bpd this year, the IEA said, after stocks declined on average by 140,000 bpd last year.
CNA
15-05-2025
- Business
- CNA
IEA forecasts slowdown in global oil demand growth for the rest of 2025
LONDON : The International Energy Agency (IEA) said on Thursday economic headwinds combined with record sales of electric vehicles will reduce global oil demand growth to 650,000 barrels per day for the remainder of 2025. That marks a slowdown from the 990,000 bpd the IEA measured for demand growth over January-March. "Increased trade uncertainty is expected to weigh on the world economy and, by extension, oil demand," the IEA said in its May oil market report. The IEA now expects global demand growth to average 740,000 bpd overall this year, an upward revision of 20,000 bpd on the month because of higher expected economic growth and lower oil prices supporting consumption. It sees demand growth then averaging a similar 760,000 bpd in 2026. The Paris-based watchdog hiked its supply growth forecast by almost 400,000 bpd on the month to 1.6 million bpd in 2025 as expectations of higher output from Saudi Arabia offset a predicted slowdown in U.S. shale oil output in a lower oil price environment. Saudi Arabia accounts for almost all of the hike in the IEA's 2025 supply growth forecast, the IEA said, as it is the only country with room to add barrels back to the market based on current production levels. The OPEC+ group agreed a second monthly accelerated output increase for June at its last meeting. "Based on continued price weakness, we expect more activity cuts over the coming quarters," the IEA said of U.S. shale, having cut its U.S. shale forecast by 40,000 bpd for 2025 and 190,000 bpd for 2026. In its own monthly oil report on Wednesday, the Organisation of Petroleum Exporting Countries (OPEC) trimmed its forecast for oil supply growth from the U.S. and other producers outside the wider OPEC+ group for 2025. A sharp rise in supply, considerably outpacing demand growth, will force oil storage levels higher by an average of 720,000 bpd this year, the IEA said, after stocks declined on average by 140,000 bpd last year.
Arab News
14-05-2025
- Business
- Arab News
OPEC cuts non-OPEC+ oil supply forecast amid falling investment
RIYADH: OPEC has lowered its forecast for oil supply growth from non-OPEC+ producers in 2025, citing reduced capital spending and mounting market pressures. In its monthly report released Wednesday, OPEC said it now expects oil output from countries outside the OPEC+ alliance to increase by about 800,000 barrels per day in 2025 — down from last month's estimate of 900,000 bpd. OPEC+—which includes OPEC members, Russia, and other allied producers— has struggled in recent years to stabilize the market amid surging production from US shale and other non-member nations. A slowdown in that growth would ease the path for OPEC+ to manage supply more effectively. The group also reported a projected 5 percent decline in capital expenditure on oil exploration and production outside OPEC+ in 2025. This follows a $3 billion increase in 2024 investment, which brought total spending to $299 billion. 'The potential impact on production levels in 2025 and 2026 of the decline in upstream E&P oil investments will constitute a challenge, despite the industry's continued focus on efficiency and productivity improvements,' the report said. While the US remains the leading source of non-OPEC+ supply growth, OPEC has revised its US output forecast downward, now expecting an increase of 300,000 bpd in 2025 compared to 400,000 bpd predicted last month. Oil prices have come under additional pressure recently following OPEC+'s decision to accelerate output increases in May and June, as well as the implementation of new trade tariffs by President Donald Trump. Despite global economic headwinds, OPEC left its forecasts for oil demand growth in 2025 and 2026 unchanged, after cutting them last month. The decision reflects updated data from the first quarter and the influence of shifting trade dynamics. The group welcomed the recent trade deal between the US and China, calling it a sign of potential longer-term stabilization. 'The 90-day trade agreement between the US and China suggests the potential for more lasting agreements, likely supporting a normalization of trade flows but at potentially elevated tariff levels compared to pre-April escalations,' OPEC said.
Bloomberg
08-05-2025
- Business
- Bloomberg
Saudi Arabia Goes Whistling Past the Kazakh Oil Graveyard
The four most dangerous words in finance are 'this time is different.' History suggests that when Saudi Arabia launches a price war against one of its OPEC+ allies, it ultimately succeeds — but this time really will be different 1. Saudi efforts to bludgeon Kazakhstan into compliance with its OPEC+ oil production quota are doomed to fail. Ostensibly, Riyadh is trying to reestablish discipline among rogue producers; Kazakhstan and several others are cheating on their output targets. To force them to relent, the kingdom is voting at OPEC+ meetings to raise group production faster than previously expected, hoping that the ensuing price decline forces the troublemakers into line. In OPEC+ parlance, the Saudis are trying to give the Kazakhs a sweating. To be sure, the kingdom isn't only focused on Kazakhstan. Its oil policy is multidimensional: It appears to be trying to recoup market share, probably from US shale producers, and is simultaneously using cheap crude as a tool in diplomatic talks with US President Donald Trump.
