The International Energy Agency (IEA) has upgraded its forecast for oil supply growth this year, following the decision of OPEC+ (Organization of the Petroleum Exporting Countries and allies) to increase production, Reuters reports.

Oil supply will increase by 2.5 million barrels per day (bpd) globally this year, compared to a previously forecast level of 2.1 million bpd, the Paris-based organization said in a report.

In 2025, global oil demand is expected to grow by 680,000 bpd, down from a previously estimated level of 700,000 bpd, amid the problems facing the world’s major economies.

“The latest data show modest demand in the world’s major economies, consumer confidence is still affected and the recovery is slow.” Despite OPEC+ production increases, non-OPEC producers will continue to drive oil supply growth in 2025 and 2026, the IEA said, according to Agerpres.

On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) upgraded its estimate for global oil demand growth in 2026 and lowered its forecast for supply from the United States and other non-OPEC+ producers.

Global oil demand is expected to grow by 1.38 million barrels per day (bpd) next year, up 100,000 bpd from its previous forecast, “on the back of expected stronger economic performance in OECD member states in the Americas and Europe, as well as in the Middle East and Africa.” The estimate for this year was maintained, indicating an increase of 1.3 million bpd.

In addition, OPEC expects the world economy to grow by 3% in 2025, compared to a previously forecast 2.9%, “due to very good developments in the first half of this year.” For 2026, growth was maintained at 3.1%.

Oil supply from countries that are not members of OPEC+ (Organization of the Petroleum Exporting Countries and allies) will increase by about 630,000 bpd in 2026, after OPEC last month forecast an increase of 730,000 bpd.

OPEC+ production also rose by 335,000 bpd in July, according to the report, reflecting this year’s decision to raise production quotas.