OPEC Lowers 2025 Oil Demand Forecast On Trade Tensions

OPEC has lowered its global oil demand growth forecast for 2025 due to escalating trade tensions and weaker economic signals. The revised forecast for 2025 is now 1.3 million barrels per day, a decrease of 150,000 bpd. The demand outlook for 2026 has also been adjusted downwards to 1.28 million bpd. The report from OPEC acknowledges the impact of trade disputes on economic activity, especially concerning tariffs. Consequently, the organization reduced its global economic growth projection for 2025 to 3%. Eight OPEC+ countries plan to phase out voluntary oil output cuts. This suggests a shift in OPEC's strategy, potentially signaling a tougher stance on output compliance. Oil prices have reacted to the revised demand outlook and tariff exemptions, influencing market dynamics. Brent crude traded near $66 per barrel, while WTI was trading slightly lower. Traders are now focusing on the International Energy Agency's upcoming monthly oil market report for further insights.