The International Energy Agency (IEA) has raised concerns about a potential oversupply in the global oil market, warning that a surge in US-led production could outstrip demand by a staggering 8 million barrels per day by the year 2030.

Yahoo Finance's Ines Ferré breaks down the projection, shedding light on the factors contributing to this imbalance between supply and demand.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith

Video Transcript

International Energy Agency IE A is a warning that the US led surge in oil production will lead to an outstripping of global demand by 8 million barrels per day by 2030.

Now, this is according to a new report that just released today.

The report attributing this to a number of factors including post pandemic rebound to slow down China's economic shifts, also advancements in clean energy SRE closely tracking this for us joining us now with more.

Ok.

Yes, the IE A basic finding is that oil supply is set to outstrip demand between now and 2030.

The end of this decade is when the IE A says oil demand will peak.

It's important to remember that the I A advocates for the use of cleaner energies and less fossil fuels.

Now, the international watchdog said that oil demand will slow before peaking at 106 million barrels per day in 2030.

As you just mentioned, that's up from 102 million barrels per day in 2023.

Now, at the same time, oil production is expected to surge to 114 million barrels per day.

Now that would result in an oversupply of about 8 million barrels.

Right now, fossil fuels account for about 80% of global energy supply.

And by 2030 that's expected to decrease to 73%.

Despite this warning, by the end of the decade, oil demand is expected be higher than what it is today.

In part because of growing Asian economies, the aviation industry which is very difficult to electrify and petrochemicals.

Remember that almost everything that you see around you that is synthetic, that's not made from wood or metal comes from chemicals made of molecules derived from fossil fuels.

And that industry has been growing as new materials are constantly being brought onto the market guys.

All right.

And thank you so much as always for joining us, really appreciate it.