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The International Energy Agency (IEA) announced in its April 2025 report that global oil demand growth is expected to slow to 730,000 barrels per day this year. The revised figure reflects escalating trade tensions and a weakening global economic outlook. This downward revision sends significant signals across the global energy landscape. Lower demand expectations may exert downward pressure on oil prices and impact profitability, especially in upstream sectors. Economies heavily reliant on oil exports, particularly OPEC members, may face revenue shortfalls, forcing potential production adjustments or fiscal recalibrations.

Oilfield services company SLB warned that 2025 could prove challenging for the oil sector due to global oversupply, rising trade tariffs, and increased output from OPEC+, potentially leading to a slowdown in upstream investments

Oversupply remains one of the most persistent threats to oil market stability. Meanwhile, escalating trade tariffs could disrupt energy trade flows and increase costs across the supply chain. The role of OPEC+ adds another layer of complexity as internal divergences among member states may challenge coordinated production strategies.

Oil prices climbed on Thursday as investors assessed a weaker U.S. dollar, conflicting economic data, and speculation over a potential OPEC+ output increase.

A weakening U.S. dollar typically provides upward momentum to dollar-denominated commodities such as oil. However, mixed economic signals have created an environment of uncertainty. Concerns over potential global recessionary trends could weigh on future energy consumption, while hopes for sustained central bank support keep some optimism alive.

According to China’s energy regulator, the country’s installed wind and solar power capacity has surpassed that of thermal power plants for the first time.

This breakthrough highlights China’s increasing role as a leader in renewable energy. The shift represents a direct challenge to the fossil fuel industry, suggesting a new wave of competition and opportunity for renewable technologies globally.

The International Energy Agency (IEA) will soon host a summit focused on the future of energy security, addressing geopolitical, technological, and economic factors impacting energy stability.

Amidst growing geopolitical tensions and climate-related challenges, this summit offers an opportunity to redefine strategies for ensuring stable and sustainable energy supplies. Effective management of energy resources during crises remains one of the primary challenges for both producers and consumers.

Forecasts suggest that renewable energy sources such as solar and wind will continue expanding rapidly, with a 20% increase in global solar energy installations projected for 2025.

The continued rise of renewables signals a structural transformation in global energy markets. As dependency on fossil fuels diminishes, nations have the opportunity to build more resilient, diversified, and sustainable energy infrastructures.