Global oil investments are expected to fall by 6% in 2025, according to the International Energy Agency, cited in a Bloomberg story.
This would mark the first annual drop in a decade, excluding the pandemic-related downturn.
IEA points to declining oil investment, driven by global economic uncertainties, lower demand expectations, and the reduced ROI triggered by lower crude pricing.
A sharp pullback in spending on US tight oil is a key factor, according to the IEA.
It comes as crude prices have fallen amid escalating global trade tensions and increased output from OPEC+, which is adding supply into an already well-stocked market.
The Paris-headquartered energy industry body will later this morning release its World Energy Investment report for 2025.