Global oil production reached a record 106.9 million barrels per day (mbd) in August 2025, driven by output increases from key OPEC+ members and non-OPEC producers, according to the International Energy Agency (IEA).
Since April, eight major OPEC+ countries including Saudi Arabia and Russia have gradually boosted production after years of restrictions, with another production hike announced recently. Meanwhile, non-OPEC nations such as the United States, Brazil, Canada, Guyana, and Argentina are also operating at or near all-time production highs.
Despite a slight uptick in demand, the IEA forecasts a global oil supply surplus in 2025, which is weighing on prices. The average price of Brent crude dropped to $67 per barrel in August, $2 lower than July.
Looking ahead, the IEA projects:
- Total supply to increase to 105.8 million mbd in 2025 (up 2.7 million mbd from 2024)
- Demand to reach 103.9 million mbd in 2025
- Supply to climb further to 107.9 million mbd in 2026
- Demand forecast at 104.6 million mbd in 2026
Investor sentiment remains bearish due to concerns over oversupply, keeping oil prices in check despite production growth.
