The Organization of the Petroleum Exporting Countries cut the expected global oil demand for 2026 again on Thursday.OPEC’s June report showed a slightly downward trend in forecasted oil demand worldwide for the rest of the year, releasing the report during a heightened week of tensions in the war between the United States, Israel, and Iran. Much of the recent concern has centered on the Strait of Hormuz, as Iran announced a full closure of the crucial oil-shipping waterway on Wednesday evening.The OPEC report for June forecasted that world oil demand would increase by about 970,000 barrels per day in 2026, down from May’s growth estimate of what the group called a “healthy” 1.17 million barrels per day. The report called the month-to-month change a “minor downward adjustment.” But May’s report had also been a downward trend from the month prior, falling from 1.38 million barrels per day in April to 1.17 million barrels per day in May.
OPEC, however, forecasts that global oil demand next year will “rebound and grow” at a rate of 1.73 million barrels per day. This estimate is more positive than the May estimate of 1.54 million barrels per day.
Iran’s crude oil production also fell by 546,000 barrels from April to May, the only OPEC nation to record a drop in crude oil production, according to the report. The nation went from producing 2.875 million barrels in April to 2.330 million barrels a day in May. The drop in production aligned with the Trump administration’s blockade of the Strait of Hormuz.
