OPEC Lowers Global Oil Demand Growth Forecast for 2026

OPEC's latest forecast suggests that global oil demand growth in 2026 will be lower than previously expected, at just 400Mb/d. This marks the fifth consecutive monthly downward revision from the organization, reflecting a decline in industrial activity in Europe and Asia-Pacific.

Non-OECD countries are expected to drive growth, with an increase of 500Mb/d led by Latin America, Africa, and other Asian nations. In contrast, OPEC raised its oil demand growth forecast for 2027 to 2.4MMb/d, with non-OECD countries accounting for 1.9MMb/d of that expansion.

Total OPEC crude oil production averaged 24.08MMb/d in August, increasing by 346Mb/d month-on-month. However, regional disruptions caused sharp localized declines in Iran and Saudi Arabia.