Not only did oil supply reach a new record, at 100 million barrels a day, but demand is also expected to increase through 2019, according to the International Energy Agency. Despite moves into greener energy solutions, oil continues to surge in production, particularly in OPEC nations and the U.S.
The agency indicated that production will only moderate because of bottlenecks in supply, not reduction in demand. OPEC (Organization of Petroleum Exporting Countries) still represents at least 33 per cent of production.
Although there were declines in Iran — who face U.S. sanctions — output increased in other countries, such as Saudi Arabia, Nigeria, Iraq and Libya. There may be pressure on prices due to reduced Iranian and Venezuela exports.
Although demand slowed, especially in Europe and Asia, the forecast from the agency remains steady, with demand projected to increase by another 1.4 million barrels a day in 2018 and 1.5 million in 2019. Long-term forecasts do project an overall peaking demand by 2036, in part due to the growing shift towards electric vehicles and hybrid.