The World Bank reports that the global oil supply surplus is gradually approaching

The recent report released by the World Bank has sounded the alarm for the upcoming oil supply surplus,which may disrupt the global economic and trade landscape.In its latest Commodity Market Outlook report,the World Bank stated,”We are heading towards a historic oversupply in the oil market,a scale that has only occurred twice since the birth of the oil industry in the mid-19th century.By 2025,global oil supply will exceed demand by 1.2 million barrels per day.Only in 1998 and 2020 have the difference between supply and demand exceeded this figure.Therefore,in the next six years,oil prices may be below$60 per barrel

The report points out that the global oil oversupply is the result of multiple factors working together,including a rise in electric vehicle sales(electric vehicle sales will exceed 23%of new car sales in 2024 and reach 40 million units by 2030),an increase in the use of liquefied natural gas(LNG)fuel trucks,an increase in oil production in non OPEC+oil producing countries,and sustained overproduction in OPEC+member countries.

Although there will be economic uncertainties globally in the coming year,oversupply may become an important force in the adjustment of the oil market.The US digital news website Axios recently reported that even if geopolitical conflicts intensify,the new reality of oversupply may suppress energy prices and cause serious damage to the long-term economy that supports oil production.The World Bank warns that energy prices may fall to the lowest level in five years.