The International Energy Agency revised its 2026 global oil demand growth forecasts higher on Wednesday in its latest monthly oil market report, suggesting a slightly narrower surplus for the market this year.

The IEA now expects global oil demand to rise by 930,000 barrels per day (bpd) this year, up from the 860,000 bpd growth forecast in its previous report.

That suggests global oil supply will exceed demand by 3.69 million bpd this year, according to Reuters calculations based on the report, narrowing from an implied surplus of 3.84 million bpd in the Paris-based watchdog's December report.

"For now, bloated balances provide some comfort to market participants and have kept prices in check," the IEA said.

-Robert Harvey and Alex Lawler/Reuters