Major oil companies have received a stark warning that a major oversupply is expected by 2030

An oil pump is seen near the nearby Callon Petroleum area on March 27, 2024 in Monahans, Texas.

Brandon Bell | Getty Images News | Getty Images

The U.S.-led increase in global oil production is expected to outpace demand growth between now and the end of the decade, the International Energy Agency said on Wednesday, pushing spare capacity to unprecedented levels and potentially upending OPEC+ market management.

These forecasts sparked a stern warning to major oil companies from IEA Executive Director Fatih Birol, who indicated that the world’s largest energy majors may want to align their business strategies with the ongoing changes.

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