OPEC and IEA Cut Global Oil Demand Forecasts Amid Geopolitical Tensions

OPEC and IEA lower their forecasts for global oil demand growth in 2026

Oil prices traded mixed on Wednesday after major energy agencies cut their projections for global oil demand, offsetting support from continued geopolitical tensions and shipping disruptions in the Middle East.

Brent crude futures were down 0.25%, at $88.69, while US WTI crude was up 0.22% and trading at $83.44. The Organization of Petroleum Exporting Countries (OPEC) reduced 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. Global oil supply is expected to decline by 4.3 million barrels per day this year, resulting in an overall supply deficit of around 1.27 million barrels per day in 2026.

The continued disruption to maritime traffic has kept concerns over global energy supplies elevated despite weaker demand projections.