OPEC slashes 2026 oil demand growth forecast to 400,000 BPD, citing weaker momentum

The Organization of the Petroleum Exporting Countries (OPEC) has majorily reduced its global oil demand growth forecast for 2026, slashing its projection to 400,000 barrels per day (bpd) from an initial estimate of 1.4 million bpd.

Secretary General of OPEC, Haitham Al Ghais said on Monday that organization has revised down its ‌oil demand growth forecast for this year in line with developments throughout ‌the year.

Despite the sluggish growth indicators for 2026, OPEC leadership struck an optimistic note for the medium term, projecting that deferred consumption will ultimately materialize as pent-up demand heading into next year.

Al Ghais emphasized that the global energy sector continues to face underlying vulnerabilities, noting persistent underinvestment across upstream, midstream, and downstream operations that leaves critical refining and transport infrastructure exposed.

Announced by OPEC Secretary-General Haitham Al Ghais during the WPC Energy Congress in Riyadh, the sharp 71% downgrade reflects weaker-than-anticipated consumption patterns throughout the year.

The cartel reduces its annual projection, pointing to a sluggish consumption cycle while anticipating a strong rebound.

However, OPEC expects the deferred demand to materialise in 2027, when it anticipates pent-up demand.