OPEC trims 2026 oil demand growth to 970,000 bpd again
Business
OPEC has trimmed its prediction for global oil demand growth in 2026 to 970,000 barrels a day, marking the second time it has cut it.
Even with ongoing conflict in Iran, OPEC thinks the hit to oil consumption will not be as big as the US Energy Information Administration and the International Energy Agency expect.
Iran tensions disrupt Strait of Hormuz
Tensions in Iran have disrupted the Strait of Hormuz, a key route for oil shipments, which means less Middle Eastern oil is reaching the market and prices are climbing.
Interestingly, OPEC expects demand to bounce back in 2027 and has upped its forecast for that year.
Meanwhile, Iran's exports have dropped sharply due to a US blockade, and production across OPEC+ fell last May.