Oversupply of oil could create glut of 4m barrels a day, says energy watchdog

An oil tanker in Ningbo Zhoushan port, Zhejiang province, China. The International Energy Agency expects next year’s surplus to be larger than previously forecast. Photograph: /Reuters

The world is producing more oil than it needs and by next year there could be a glut of 4m excess barrels a day entering the market, according to the global energy watchdog.

The International Energy Agency said the surplus in 2026 was likely to be larger than previously forecast, despite a decision from the biggest oil producers to pause their plan to increase crude exports.