Photo caption: OPEC
The Organization of the Petroleum Exporting Countries (OPEC) reduced its oil-demand outlook for this year and next, citing the impact of U.S. tariffs on economic growth globally.
The lowered outlook comes soon after the cartel and its allies announced a bigger-than-expected output boost—potentially hitting the crude market with excess supply at a time when the growing trade war is increasing economists’ forecasts of a U.S. recession.
OPEC now expects demand to increase by 1.30 million barrels per day (B/D) this year and 1.28 mb/d in 2026, down from its previous forecasts of 1.45 mb/d and 1.43 mb/d, respectively.
“Global economic growth began in 2025 with strong fundamentals and resilience across major economies,” OPEC said. “However, recent developments in global trade relations have shifted the outlook and introduced new uncertainties amid a rising escalation in tariffs between the US and China.”
Brent and West Texas Intermediate crude futures were both slightly lower in recent trading.
=== Yahoo ===