IEA lowers 2026 oil glut forecast for first time since May

LONDON, Dec 11 (Reuters): The International Energy Agency trimmed its forecast of next year's global oil supply glut for the first time since May on Thursday, flagging higher demand prospects due to a stronger world economy and lower supply from nations under sanctions.

Oil prices have been under pressure for months due to predictions from the IEA, which advises industrialised countries, and other analysts of a looming glut.

Global oil supply will exceed demand by 3.84 million barrels per day, according to figures from the Paris-based IEA's latest monthly oil market report, down from a 4.09 million bpd surplus estimated in November.

A surplus of almost 4 million bpd is still equal to almost 4 per cent of world demand and is at the higher end of analysts' predictions. Oil was trading lower on Thursday, with Brent crude - down over 15 per cent in 2025 - trading below $62 a barrel.

Supply rose sharply this year boosted by output hikes from the Organization of the Petroleum Exporting Countries and its partners - a group known as OPEC+ - as well as growth in the United States and other producers.