With the Steady Oil Rise, World Looks towards Middle East supply

Despite concerns over instability in the Middle East, oil prices have remained steady, largely due to the potential for increased supply. However, the World Bank predicts that an oil surplus will lead to prices falling to their lowest level in five years by 2025. The organization projects that global oil production will exceed demand by 1.2 million barrels per day in 2025.
Several non-OPEC+ countries are expected to ramp up production, and OPEC+ has significant unused capacity. Meanwhile, China’s manufacturing sector has slowed, and the country's oil demand has plateaued. Overall, global oil demand growth has been slower than anticipated, especially in China.
Examining the Current Situation:
Concerns about the Middle East supply disruption have been overshadowed by the potential for increased production from the region. When reports emerged that Israel would not target Iran’s energy infrastructure, fears of supply interruptions eased.
Since the start of the week, oil prices have surged by over $5 per barrel, driven by fears that Israel might strike Iran’s energy facilities. This recovery has surprised many in the market, with crude futures on track to rise by around 8% for the week, though the increase appears relatively modest given the high stakes involved.
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