There's a 'super glut' of oil coming in 2026 on weak demand and booming supply, top commodities firm says

Core Viewpoint - The oil market is expected to experience a "super glut" in 2026, driven by an influx of new supply amid softening global demand [1][5]. Supply and Demand Dynamics - Trafigura's chief economist highlighted two main factors contributing to the anticipated supply glut: a current supply-demand imbalance and the expectation of increased crude supply next year [2][6]. - Oil prices have been declining throughout the year, with Brent crude at approximately $62 per barrel (down 18% year-to-date) and West Texas Intermediate crude at around $58 per barrel (down 19% year-to-date) [2]. Future Projections - The International Energy Agency forecasts a surge in global oil supply by over 3 million barrels per day in 2026, while demand growth is expected to remain modest [4]. - The firm believes that the supply increase is largely due to long-term projects that are set to come online, which have been in planning for a decade or more [6].