OPEC and IEA Cut Oil Demand Forecasts

OPEC and the International Energy Agency (IEA) have both revised their forecasts for global oil demand due to escalating trade tensions and U.S. tariffs affecting economic growth. OPEC reduced its demand growth projections for 2025 and 2026 by about 150,000 barrels per day, now expecting an increase of 1.3 million barrels per day for both years, citing the impact of U.S. tariffs and plans for increased oil output by OPEC+. The IEA similarly cut its forecast, emphasizing the deteriorating global economic outlook. Despite these downgrades, OPEC's projections remain more optimistic than other industry forecasts, such as those from the U.S. Energy Information Administration and Goldman Sachs. In response to lower demand forecasts, oil prices have been volatile, with crude futures recently trading higher amid hopes for a resolution to trade tensions between the U.S. and China. The global economic growth forecast was also trimmed to reflect the uncertainty introduced by recent trade dynamics.