OPEC+ cuts global oil demand forecast

OPEC has revised its global oil demand growth forecast for 2025, citing escalating trade tensions and weaker-than-expected economic indicators. The cartel now forecasts a demand increase of 1.3 million barrels per day (bpd) for 2025, down 150,000 bpd from its previous projection. Similarly, the forecast for 2026 was revised downward to 1.28 million bpd.

OPEC's latest report highlights that Trump's trade war has dampened economic activity, leading to a more cautious forecast for oil consumption. The organization also revised its global economic growth forecast, now forecasting an expansion of 3% for 2025, down from its previous estimate of 3.1%.

Last week , eight OPEC+ countries announced they would phase out voluntary oil production cuts by increasing output by 411,000 barrels per day in May, equivalent to three monthly increases. In other words, the Saudis are signaling that they may be willing to give up their long-standing role as OPEC's swing producer in an effort to take a tougher stance against countries that continue to violate the production pact, particularly Kazakhstan, the United Arab Emirates and Iraq.

The revised forecasts also had an impact on oil prices, with Brent crude trading at around $66 a barrel, influenced by both the demand outlook and recent tariff exemptions. Analysts suggest that continued trade disputes could further affect market dynamics and investor confidence.

As of 11.44am on Monday, April 14, Brent crude was still trading below $65 a barrel, with the only good news being that it was holding steady rather than falling, up slightly by 0.05%. U.S. benchmark West Texas Intermediate (WTI) crude was down 0.24% at $61.35.

For traders, all eyes will now be on the International Energy Agency's (IEA) monthly oil market report, due for release on Tuesday.

The article OPEC+ cuts global oil demand forecast comes from Economic Scenarios .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/opec-taglia-le-previsioni-della-domanda-di-petrolio-globale/ on Tue, 15 Apr 2025 05:15:03 +0000.