The International Energy Agency published its latest medium-term oil market outlook on March. 17 containing closely-watched forecasts for oil supply and demand fundamentals to 2026. Below are the main projections from the ‘Oil 2021’ report. Demand Supply Warns of shrinking of global spare capacity supply cushion in the absence of more upstream spending. OPEC’s effective spare crude production capacity will narrow to 2.4 million b/d by 2026, from 6.5 million b/d in 2020, the bulk of it in Saudi Arabia. The Middle East will dominate 2021-2026 supply growth picture, while US supply growth will be more modest compared to recent years. IEA estimates that the demand for OPEC’s crude will rise from 27.3 million b/d this year to reach 30.8 million b/d in 2026. By 2026, total oil production will rise by 10.2 million b/d […]