Rising global inventories weighed on oil markets in 2025, crushing prices and helping push headline inflation lower. Some forecasters expect the trend to extend into 2026, although views diverge on how prices will evolve amid geopolitical and supply uncertainties.
Inventory Buildup
According to a recent International Energy Agency (IEA) Oil Market Report, global observed oil inventories climbed to four-year highs in October, reaching 8,030 million barrels. Stockpiles averaged 1.2 million barrels per day during the first 10 months of the year.
The buildup reflects a shift in the balance between oil supply and demand. Global liquids demand remained relatively stable, as weaker demand from China was offset by stronger consumption in the United States.
