OPEC Sees Oil Demand Rising, Cuts Growth Forecast
OPEC's August 2026 report projects rising oil demand through 2027, even as crude prices fell in July and global growth forecasts were trimmed.
ERBIL (Kurdistan24) - The Organization of the Petroleum Exporting Countries (OPEC) projected Wednesday, that global oil demand will grow by 600,000 barrels per day in 2026 and climb further to 2.2 million barrels per day in 2027, even as the organization trimmed its forecast for global economic growth this year.
In its monthly report for August 2026, OPEC reduced its global economic growth forecast for this year to 3%, down from an earlier projection of 3.2% for 2027. Despite the softer growth outlook, the organization raised its expectations for oil demand over the next two years, signaling confidence in continued consumption growth even amid broader economic headwinds.
The report found that the average price of OPEC's crude oil basket fell by $6.76 per barrel in July, settling at $82.99. Brent crude averaged $83.97 per barrel over the same period, while West Texas Intermediate (WTI) crude averaged $79.22 per barrel.
OPEC said countries participating in its coordinated output agreement increased production by 1.42 million barrels per day in July, bringing the average to 37.66 million barrels per day.
On inventories, the report showed that commercial oil stockpiles in countries belonging to the Organization for Economic Co-operation and Development (OECD) fell by 26.4 million barrels in June, reaching 2.729 billion barrels. That level is roughly 59.6 million barrels below the same period last year and 66.5 million barrels below the five-year average.
OPEC also lowered its 2026 demand forecast for allied oil-producing countries to 42.1 million barrels per day, a decrease of 200,000 barrels from 2025 levels, while keeping its 2027 forecast unchanged at 43.6 million barrels per day.
The report concluded by pointing to continued high refining margins at major global hubs, attributing the trend to rising demand for refined products, the shutdown of several refineries, and declining diesel and gasoline stockpiles in Europe, in addition to the impact of geopolitical conditions on fuel market balance.