Oil Struggles for Direction as IEA Flags Greater Volatility Ahead, OPEC Cuts Demand Forecast
OPEC cut its 2026 demand growth estimate to 1.2 million barrels a day as the Iran war and supply losses deepen market volatility.
- On Thursday, OPEC cut its 2026 demand growth forecast to about 1.2 million barrels per day, down from 1.4 million previously, reflecting economic pressures from the Iran war.
- Since the Iran war began in late February, OPEC production has fallen 1.7 million barrels per day and declined more than 30% overall, depleting global inventories at record pace.
- The International Energy Agency reported more than 14 million barrels per day of supply cut, while ING analysts said elevated fuel prices remain tied to potential infrastructure damage in the Middle East.
- Former Commerce Secretary Carlos Gutierrez told CNBC on Wednesday that China seeks an end to the conflict as the biggest customer of oil via the Hormuz Strait, with both Chinese President Jinping and President Donald Trump desiring resolution.
- Oil markets struggled for direction Thursday as traders weighed OPEC's lower demand outlook while the International Energy Agency flagged greater volatility ahead; Brent crude futures fell 0.21% and West Texas Intermediate futures dropped 0.16%.
17 Articles
17 Articles
Arab News
OPEC cuts 2026 global oil demand growth forecast
RIYADH: The Organization of the Petroleum Exporting Countries on Wednesday lowered its forecast for global oil demand growth in 2026, aligning with other forecasters who have revised expectations downward amid the Iran war. World oil demand will rise by 1.17 million barrels per day in 2026, OPEC said, down from 1.38 million bpd expected previously. The group said demand is
The OPEC oil cartel has lowered its forecast for the growth of global oil demand this year. This is due to the sharp price increases of crude oil caused by the war in the Middle East. However, OPEC expects demand to recover more strongly next year than previously anticipated.
On Wednesday, OPEC, the alliance of oil-exporting countries, indicated that it was still expecting growth in world oil demand in 2026, but less than previously expected, in the context of the oil crisis linked to the war in the Middle East.
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