Global Economy
OPEC Cuts Q2 Oil Demand Forecast Amid Middle East Conflict
The Organization of the Petroleum Exporting Countries (OPEC) has lowered its forecast for global oil demand in the second quarter of 2026 by 500,000 barrels per day, citing the ongoing conflict in the Middle East as the primary factor. Despite this short-term adjustment, the organization maintains its full-year growth projection, expecting the economic impact to be balanced out during the latter half of the year.
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The Organization of the Petroleum Exporting Countries (OPEP) has revised downward its forecast for global oil demand for the second quarter of 2026, citing the ongoing war in Iran as a key contributing factor, according to the monthly report published by the organization on its official website.
According to the report, global oil demand is expected to average 105.07 million barrels per day in the second quarter, representing a decrease from the 105.57 million barrels projected the previous month.
'The growth in demand for the second quarter of 2026 has been revised downward for both OECD and non-OECD countries, primarily due to a slight temporary slowdown in oil demand growth, considering the ongoing developments in the Middle East,' stated OPEC.
However, this slowdown is expected to be offset in the second half of the year, the organization added.
Meanwhile, the forecast for global demand growth for the entire year remains unchanged from previous estimates.
The Middle East tensions continue to create uncertainty in global energy markets, with analysts closely monitoring how geopolitical developments might affect oil supply and demand dynamics in the coming months.
Oil prices have been volatile amid these developments, with markets responding to shifting forecasts and geopolitical tensions that could potentially disrupt supply routes from the region.