OPEC Adjusts Oil Demand Forecast Amid Middle East Conflict

OPEC has revised its global oil demand growth forecast for 2026 due to the Middle East conflict impacting oil supply routes. Despite current challenges, OPEC expects a rebound in demand by 2027. The closure of the Strait of Hormuz has significantly affected oil output, causing prices to rise.

OPEC on Wednesday revised its forecast for global oil demand growth in 2026, as geopolitical tensions in the Middle East impact oil supply routes. The organization now anticipates a smaller decline in demand than the International Energy Agency, which recently adjusted its own estimates.

The ongoing conflict has led to the closure of the Strait of Hormuz, a crucial global oil channel, disrupting millions of barrels of Middle Eastern oil output and driving fuel prices upward. This development is straining consumers and businesses, prompting governments to take measures to preserve energy supplies.

Despite these challenges, OPEC projects oil demand to climb by 1.54 million barrels per day in 2027, an increase from previous forecasts. The producer group, along with allies like Russia under OPEC+, had plans to boost output in April, but current conditions have impeded fulfilling the agreement. April's average crude output was notably down from March, according to OPEC's sources.