Global oil market faces “super glut,” analysts warn

According to analysts speaking to The Financial Times, the global oil market is set to face a rare and significant "super glut."

Experts warn that 2025 could see a sharp surplus of crude, as a surge in production coincides with slowing economic growth and weakening demand in key markets.

The main drivers behind the expected oversupply include the commissioning of major oil projects in Brazil and Guyana, alongside the recovery of output in several other regions.

At the same time, China, the world’s largest oil importer, is slowing its consumption growth due to the rapid spread of electric vehicles, which is reducing demand for petrol and diesel.

While low prices have encouraged China to stockpile crude in strategic reserves, analysts caution that any drop in concentrated demand could see the surplus emerge sooner than expected.

Additional pressure on prices is anticipated from US policy, with President Donald Trump pledging a sharp expansion of American production under the “drill, baby, drill” approach.

Weak global economic conditions, volatile markets, ongoing trade tensions, and changing consumer patterns are all reshaping demand, signalling the start of a prolonged period of pressure on oil prices.

By Aghakazim Guliyev