OPEC and IEA Cut Demand Outlook, Oil Prices Mixed Amid Disruptions
Oil prices are mixed after major energy agencies lowered their forecasts for global oil demand. The Organisation of Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth in 2026 to 580,000 barrels per day.
The International Energy Agency (IEA) also revised its outlook lower, projecting a contraction in global oil demand of 1.6 million barrels per day this year. This decline is due to the prolonged disruption to oil flows through key Middle Eastern shipping routes and higher oil prices continuing to weigh on consumption.
Preliminary data from the American Petroleum Institute indicated US crude inventories rose sharply last week, which could help ease concerns over supply tightness. However, the continued disruption to maritime traffic has kept concerns over global energy supplies elevated despite weaker demand projections.