The International Energy Agency expects a massive supply surplus on the global oil market of 3.33 million barrels per day on average in the coming year, based on its forecasts, Commerzbank's commodity analyst Carsten Fritsch notes.

Oil prices fall by almost 2% on Thursday

"That would be another 360,000 barrels per day more than predicted a month ago and was only exceeded during the coronavirus pandemic five years ago. The upward revision is solely due to higher supply. The demand forecast was even revised slightly upward."

"However, oil supply is expected to rise even more sharply. The IEA expects supply growth of more than 1 million barrels per day for both OPEC+ and non-OPEC+ countries next year. Oil prices subsequently fell by almost 2% yesterday, giving up the gains made since the beginning of the week."