China’s weak economy and record US production will lead to a surplus of one million barrels of oil a day next year, IEA says

Surely, Trump won’t dishonestly take credit for this. 

“The oil market could see a major supply glut in 2025 thanks to booming production from non-OPEC states like the US and sagging demand in China, according to the International Energy Agency.

The IEA said in its November Oil Market Report that the world’s oil market is on track for a one-million barrel-a-day surplus next year.

The excess is largely being driven by a weakening economy in China. Demand for oil in the world’s second-largest economy contracted for six straight months in a row as of September, IEA data shows. This accounted for the “main drag” on demand this year, the report said.

Meanwhile, the agency is predicting strong oil production among non-OPEC producers led by countries like USGuyana, Argentina, and Brazil.

Altogether, non-OPEC producers are on track to expand oil production by 1.5 million barrels a day, it estimated. That amount is more than the agency’s forecast for world oil consumption to grow by 990,000 barrels a day next year.”

“The US has become the largest oil producer in the world, pumping out more crude than any other country in history for the last six years in a row, according to the US Energy Information Administration. Domestic production hit a record 13.4 million barrels a day in August, according to data from the Energy Information Administration.”

https://www.yahoo.com/finance/news/chinas-weak-economy-record-us-042533492.html

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