World Bank Warns of Potential Supply and Demand Gap in Oil by 2026
The World Bank has issued a new report signaling a potential imbalance in global oil markets by 2026, with supply expected to expand faster than demand. This trend could lead to volatility in energy markets as producers adjust output to maintain price stability.
Key Highlights
- Supply growth continues: Global oil production capacity is projected to increase across multiple regions.
- Slower demand growth: Demand expansion is decelerating due to energy efficiency measures and shifts toward cleaner energy.
- Risk of oversupply: Analysts warn of possible market imbalance if production is not adjusted in time.
Market Outlook
The report suggests that policymakers and energy companies may need to adjust their production strategies to avoid long-term oversupply, while also preparing for possible price fluctuations.
