OPEC Lowers 2026 Global Oil Demand Outlook, Raises 2027 Estimate

The Organization of the Petroleum Exporting Countries reduced its global oil demand growth outlook for this year while upgrading its projection for 2027. The cartel now expects oil consumption to rise by 780,000 barrels a day in 2026, it said in its latest monthly market report Monday. Last month, OPEC estimated demand to increase by 970,000 barrels. For next year, the cartel now expects world oil demand to rise by 1.94 million barrels a day, compared with its prior forecast of a 1.73-million-barrel gain. West Texas Intermediate crude oil was up 5.1% at $75.8 a barrel in afternoon trade, while Brent gained 5.3% to $80.03 following renewed hostilities in the Middle East between the US and Iran. Earlier this month, OPEC and its allies -- dubbed as OPEC+ -- agreed to further increase output targets by 188,000 barrels a day from August. Last week, the International Energy Agency projected a smaller decline in global oil demand in 2026 amid signs of a rebound in consumption as crude flows improve. OPEC on Monday held its global economic growth forecasts steady at 3.1% for 2026 and 3.2% for 2027. US gross domestic product is still seen rising 2.2% and 2% in 2026 and 2027,.