An oil market surplus, as widely predicted, is "highly likely" in 2026, but Shell CEO Wael Sawan said during a conference call with investors, Interfax reports.
"Indeed, there are headwinds for supply and demand fundamentals in 2026, and a supply glut scenario in 2026 is highly likely," he said, noting that Chinese storage facilities have been filling up over the past one or two quarters, as well as the availability of more oil "on the water," which has offset some of the oversupply.
Sawan also pointed to the influence of "the observed macroeconomic and geopolitical reality, which is driving up prices." "I think there are headwinds in the short and medium term. In the long term, we remain firmly confident in rising oil prices, as well as growth in LNG," he emphasized.
