OPEC Lowers Global Oil Demand Growth Forecast for 2026

OPEC lowered its forecasts for global oil demand growth during the current year, amid ongoing geopolitical tensions and the near-total closure of the Strait of Hormuz. The organization stated in its monthly report that global demand is likely to recover later, while it raised its estimates for 2027. It noted that the ongoing war has led to a decline in Middle East production by millions of barrels per day and rising fuel prices, increasing pressure on consumers and companies and pushing governments to ration supplies. The organization estimated that demand growth in 2026 will reach 1.17 million barrels per day, compared to 1.38 million in previous estimates, while it raised 2027 forecasts to 1.54 million barrels per day. It noted that the "OPEC+" alliance was unable to implement production increase plans due to the strait's closure, as the alliance's average output in April declined to 33.19 million barrels per day.