By Ademola Adekusibe
October 27, 2025.
The International Energy Agency (IEA) has projected that global oil prices will remain moderate in the coming weeks, as rising output continues to outpace demand despite ongoing geopolitical tensions in key producing regions.
Fatih Birol, the IEA’s Executive Director, stated this during an interview with Bloomberg Television on Sunday, noting that global supply growth, particularly from the Americas, has kept the market well balanced.
He identified the United States, Canada, Brazil, Guyana, and Argentina as the “American quintet” leading the surge in production that continues to exceed consumption levels.
“When we look at the oil markets, we see a surplus of oil production,” Birol said. “This growth from production is much stronger than the growth of oil demand. Oil demand growth is getting weaker and weaker as the Chinese economy transitions from a heavy industry-based structure to a lighter, service-driven economy. In addition, electric cars are beginning to eat into global oil demand growth.”
Birol further explained that while geopolitical tensions in regions such as the Middle East and Eastern Europe remain a concern, the strong production momentum and weakening demand are expected to keep oil prices within a moderate range.
The IEA chief emphasized that unless there is a significant supply disruption or a sharp economic rebound, the current market equilibrium is likely to persist into the near future.
