Major oil production surge expected in 2025

A significant number of new oil projects are expected to start in 2025. They will mainly come from countries like Brazil and Saudi Arabia. This surge in production will be the largest seen in over ten years. Raymond James reports that these new oil fields will produce around 2.9 million barrels of crude oil each day. This is a big jump from about 800,000 barrels per day last year. The increase represents the highest output recorded since 2015. Notable projects include those in Kazakhstan's Tengiz field and Brazil's Bacalhau field. In Saudi Arabia, the Berri and Marjan expansions will also contribute to this growth. However, some projections may change due to possible delays. Experts predict an oversupply issue for oil in 2025. New productions from countries like Guyana and Brazil will add to the excess, while OPEC+ plans to revive inactive output soon. Concerns over lower global energy demand due to trade policies from the U.S. also influence this outlook. The U.S. Energy Information Administration suggests that supply will surpass demand by 100,000 barrels a day this year. The International Energy Agency believes the surplus could be as much as 600,000 barrels daily. Raymond James foresees that by late 2025, supply might exceed demand by 280,000 barrels a day. According to analyst Pavel Molchanov, many investors may not fully understand the significant amount of new supply expected next year.