Oil Prices Stabilize Amid Lower Demand Projections
Oil prices stabilized on Wednesday after earlier increases following news that forecasters have reduced projections for global oil demand in 2026. According to the Organisation of the Petroleum Exporting Countries, world oil demand growth will be lower than expected next year at 580,000 barrels per day.
The International Energy Agency has also cut its 2026 demand projections, predicting a 1.6 million bpd contraction this year. However, the agency expects a significant drop in supply of 4.3 million bpd this year, resulting in an overall deficit of around 1.27 million bpd.
Anas Alhajji, managing partner at Energy Outlook Advisors, noted that demand figures include inventory changes and may differ from actual consumption at any given time. US crude stocks saw a surprise build last week due to weak exports and increased imports.