Global oil supply climbed to a record high in August as OPEC+ and other producers boosted output, with the prospect of a surplus keeping prices subdued, the International Energy Agency (IEA) reported on Thursday.

Eight core members of the OPEC+ alliance, including Saudi Arabia and Russia, have been steadily raising production since April after years of output cuts. The group announced another hike on Sunday.

Outside the cartel, production has also surged. According to the IEA, output in the United States, Brazil, Canada, Guyana and Argentina is “at or near all-time highs.”

Although demand inched up slightly in August, the Paris-based agency warned of a looming oversupply in 2025. “Investor sentiment towards oil remained strongly bearish, as the prospect of looming oversupply dampened any positive price impetus,” the IEA said in its monthly market report.

Brent crude, the global benchmark, averaged $67 in August—$2 lower than in July.

The IEA said global supply “inched up” to a record 106.9 million barrels per day (mbd) last month. It now expects total supply to rise by 2.7 mbd to 105.8 mbd in 2025, while demand is projected at 103.9 mbd. By 2026, supply is forecast to increase further to 107.9 mbd, against demand of 104.6 mbd.