OPEC lowered its 2025 global oil demand growth projection on Monday for the first time since December, citing the effects of first-quarter statistics and US trade tariffs. In a monthly report, the Organization of the Petroleum Exporting Countries predicted that the world’s oil consumption will increase by 1.28 million barrels per day in 2026 and by 1.30 million in 2025. Compared to last month’s statistics, both projections are down 150,000 bpd.
Oil prices have been under pressure to decline this month, and concerns have been raised about economic growth due to U.S. President Donald Trump’s trade tariffs and OPEC+’s plan for increased supply, which includes OPEC and allies like Russia.
According to the study, OPEC cut its prediction for global economic growth this year from 3.1% to 3.0% and for next year from 3.2% to 3.1%. Although OPEC maintained its projections last month, stating that the global economy will adjust, it acknowledged that trade concerns would increase volatility.
Though recent trade-related dynamics have increased the uncertainty surrounding the short-term prospects for global economic development, the global economy displayed a stable growth trend at the start of the year, according to OPEC’s report released on Monday.
Following U.S. exemptions on specific taxes, Brent crude was trading close to $66 per barrel, maintaining an earlier increase in oil prices following the report’s release. This month, prices have still decreased by more than 10%.
Unlike the International Energy Agency, which predicts demand will peak this decade as the globe transitions to cleaner fuels, OPEC’s oil demand stance remains at the higher end of industry estimates. It anticipates that oil usage will continue to rise for years.
Also Read:
Connecting Cultures and Bridging Barriers Across Borders: Dr. Csilla Rostas
Ahmed Alqadeeb: Leadership and Business Growth in Saudi Arabia
