OPEC Forecasts Resilience Amidst Trade Conflicts
OPEC anticipates a resilient global economy in the latter half of 2025 despite trade issues. The organization also trimmed its 2026 forecast for oil supply growth outside OPEC+. Although global oil demand predictions remain unchanged, a slight moderation in growth is expected.
The Organization of the Petroleum Exporting Countries (OPEC) expressed confidence on Monday in the global economy's strength for the second half of 2025, despite ongoing trade conflicts. In a recent report, OPEC maintained its global oil demand growth forecasts for 2025 and 2026, asserting a stable economic outlook.
OPEC highlighted the robust performance of the global economy during the first half of 2025, predicting it would propel economic momentum into the year's latter half. However, it anticipates a slight moderation in growth on a quarterly basis. This outlook aligns with the unchanged oil demand forecasts after prior reductions in April.
The report also noted that oil supply growth from producers outside the OPEC+ alliance is expected to rise by 730,000 barrels per day in 2026, which is a reduction from previous forecasts. Lower non-OPEC+ supply could ease market balancing efforts led by OPEC, as rapid growth in U.S. shale has pressured prices in recent years.
(With inputs from agencies.)
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