OPEC maintains robust oil demand outlook, sees no peak
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OPEC on Thursday maintained its forecast for robust global oil demand growth in 2026 and 2027, projecting increases of 1.4 million barrels per day (bpd) and 1.3 million bpd respectively. The group sees no peak in demand on the horizon, dismissing expectations of a near-term decline. The outlook comes despite ongoing trade tensions and slowing economic growth in some regions.
Demand Growth Projections
OPEC's monthly report released Thursday forecasts global oil demand to rise by 1.4 million bpd in 2026 and 1.3 million bpd in 2027. The group expects demand to reach 106.2 million bpd by 2027, driven by transportation and industrial growth in non-OECD countries. This outlook is slightly above the International Energy Agency's estimates, which project lower growth due to energy transition policies.
No Peak Demand in Sight
OPEC Secretary-General Haitham Al Ghais stated that the organization sees no peak in oil demand on the horizon, contradicting predictions from some analysts and climate advocates. The report argues that oil will remain essential for aviation, petrochemicals, and heavy transport for decades. OPEC's view is based on continued population growth and rising energy needs in developing economies.
Market Context and Risks
The forecast comes amid global trade uncertainties, including U.S.-China tariff disputes and potential slowdowns in Europe and Asia. OPEC acknowledged that downside risks exist but maintained that demand growth will remain resilient. The group's next meeting is scheduled for July 2 to review production levels.
What's Next
OPEC's next ministerial meeting is set for July 2, where members will decide on output adjustments for the third quarter. It remains unclear whether the group will maintain current cuts or begin unwinding them amid the robust demand outlook.
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OPEC maintains robust oil demand outlook, sees no peak
