The International Energy Agency (IEA) predicts a drop in global oil consumption this year. This would be the first decline in this sector since the Covid-19 pandemic.

According to the agency, for the rest of 2026 global oil consumption will be reduced due to what is happening in the Middle East, with peace negotiations between the United States and Iran that are interrupted by armed events.

“The beginning of the ceasefire agreement between the United States and Iran seemed to give a momentary respite to the hydrocarbon industry, considering the constant rise in the price of a barrel since the beginning of the war in the Persian Gulf. However, the new escalation of hostilities between both nations once again distorted expectations regarding the future of the market.”

Projections for the oil sector in 2027

In addition to pointing out a drop in global crude oil consumption this year of 1,000,000 barrels per day, by 2027 it foresees a recovery and increase to 2,000,000 bpd.

Given the difficulty of achieving a lasting peace agreement and the armed clashes in the Persian Gulf last week, the normalization of oil markets is in doubt.

In June, after the ceasefire between the United States and Iran, the barrel of Brent fell “from $98 to a minimum of $70. The return of the attacks interrupted this decline in prices, which reached $78 in July.”

The agency has indicated that in June global oil supply increased by 4.1 million barrels per day, to 98.8 million in response to “the partial reopening of transit through the Strait of Hormuz. Instead, production remained at about 9.4 million barrels per day below pre-war levels.” Exports from the region also increased from 6.5 million barrels per day to 16.1 million.

Although the agency estimates that there may be a surplus in the oil market towards the end of the current year, “it assured that the forecast is based” on the assumption that oil tanker flows through the strait will gradually recover, allowing producers to restart fields and refineries in the Middle East and elsewhere to resume shipments of products.

M.Pino

Source: rionegro

(Reference image source: benjamin lehman on Unsplash)

Follow our news on Google! For current, interesting, and accurate information, click here to see all the content on Bitfinance.news. You can also find us on X/Twitter and Instagram

La entrada IEA predicts first drop in global oil consumption since the Covid-19 pandemic apareció primero en Bitfinance.

The International Energy Agency’s forecasts for global oil supply at the end of 2025 and for 2026 were raised to 3.1 million and 2.5 million barrels per day, respectively.

This is reflected in the IEA’s recent report on this market, confirming the increase in its forecasts for both periods regarding global supply.

The agency “notes that in 2026, total oil supply will be 4.09 million barrels per day higher than total demand, compared to an implied surplus of 3.97 million barrels per day in its last monthly report.”

Furthermore, it emphasized the market imbalance, arguing that “global oil supply continues to increase while oil demand growth remains modest compared to historical standards.”

Regarding which countries will be at the top of global growth by the end of 2025, it mentioned the United States, China, and Nigeria.

M.Pino

Source: elperiodicodelaenergia

(Reference image source: HIKARU on Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on X/Twitter and Instagram

La entrada IEA raises global oil supply growth apareció primero en Bitfinance.

The International Energy Agency (IEA) estimates that oil demand will continue to rise. In this context, production is expected to continue at this upward pace, reaching 5.8 million barrels per day, with a quarter coming from Argentina, Brazil, and Guyana.

According to the agency, global oil production will increase this decade due to demand for the product, “although it may seem counterintuitive in the midst of the climate change crisis affecting the world.”

In this oil boom, countries like Venezuela, Ecuador, Mexico, and Colombia would be displaced by other emerging countries: Brazil, Guyana, and, to a lesser extent, Argentina, which are emerging as leaders in “a new chapter in the region’s oil production.”

In Guyana’s case, it entered the oil market in 2015, when “the US oil giant ExxonMobil discovered the first of its proven crude oil reserves, estimated at around 11 billion barrels, in the depths of the Atlantic Ocean.” According to the IEA, the country, once the poorest in the region, would surpass Kuwait.

For its part, Brazil is also gaining strength from underwater discoveries. “Under three kilometers of water and five more kilometers of rock and salt, the country extracts crude oil from one of the largest offshore oil fields in the world.” These discoveries made the country the largest oil producer in Latin America in 2017.

According to the IEA, Argentina would rank third in the new regional oil boom, taking into account the gigantic Vaca Muerta field in the northwest of the country, which has the “second-largest shale gas resources in the world and the fourth-largest shale oil resources.”

M.Pino

Source: sela.org

(Reference image source: kinya jones on Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on X/Twitter and Instagram

La entrada IEA forecasts increase in global oil production, led by three Latin American countries apareció primero en Bitfinance.

According to the International Energy Agency (IEA) oil supply forecasts for 2025, the figures will be favorable.

Despite the impact on the sector of low demand from China, the agency “increased its forecast for growth in global oil demand for 2025 to 1.1 million barrels per day, from 990,000 bpd” in November.

This measure is in addition to the three-month delay, until April of this year, by OPEC+ in the start of the increase in oil production and extended by one year, until the end of 2026.

For 2025, the IEA’s outlook “points to an excess supply of 950,000 barrels of oil per day, even excluding the return to higher production quotas.”

M.Pino

Source: larepublica.co

(Reference image source: Maria Lupan on Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on X/Twitter and Instagram

La entrada Oil supply to be assured this year apareció primero en Bitfinance.

On December 5, the First Global Energy and Artificial Intelligence Summit will take place in Paris to analyze the increase in electricity consumption generated by the development and application of artificial intelligence.

This was recently indicated by the director of the International Energy Agency (IEA), Fatih Birol, who has highlighted the worrying nature of this increase in this sector, considering that electricity consumption is already high in the world.

According to the latest IEA report, “which predicts energy consumption for 2026, it anticipates that by that year, data center consumption will be more than 1,000 terawatt-hours. To give us an idea, it is the equivalent consumption of all of Japan.”

They establish as a point of comparison the global consumption of data centers in 2022, which stood at 460 TWh, approximately 2 % of all electrical energy in use.

When compared with the demand for cryptocurrency mining, they indicate that about 160 TWh will be consumed by 2026 and a growth of more than 40 % is estimated in that field. Therefore, “it continues to fall far short of the expected impact for AI.”

Personalities such as Elon Musk, from Tesla, and Sam Altman, from OpenAI, have pointed out that electricity consumption in AI is something never seen before and that an energy shortage could be faced. For her part, Jennifer Granholm, Secretary of Energy of the United States, raised the possibility of using nuclear energy to confront artificial intelligence.

M.Pino

Source: xataka

(Reference image source: American Public Power Association in Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada First Global Energy Summit in December will address AI electricity consumption apareció primero en Bitfinance.