OPEC Adjusts Oil Demand Forecast Amid Middle East Conflict

OPEC has revised its global oil demand forecasts due to the impact of the conflict in Iran. The organization anticipates a decrease in demand growth for 2026, though a rebound is expected in 2027. The conflict has affected oil routes and output, impacting prices and economic dynamics.

In a recent development, OPEC has adjusted its projections for global oil demand due to the ongoing conflict in Iran. This adjustment aligns with similar downward revisions by the International Energy Agency. Despite this, OPEC remains optimistic about a rebound in demand in 2027.

The conflict has significantly disrupted the Strait of Hormuz, a crucial oil route, resulting in reduced output from the Middle East and escalating fuel prices. This situation is prompting consumer and governmental measures to manage supplies effectively. OPEC now forecasts a rise in world oil demand by 1.17 million barrels per day for 2026, a reduction from the previous prediction of 1.38 million bpd.

OPEC+, which includes Russia among other allied countries, had planned to increase output from April; however, the closure of Hormuz has hindered these efforts. The group's crude output in April was 33.19 million bpd, reflecting a decline of 1.74 million bpd from March, according to secondary sources.