OPEC cuts Q2 global oil demand forecast amid Iran conflict
On Monday, OPEC revised its forecast for global oil demand in the second quarter, cutting it by 500,000 barrels per day, according to the group's monthly oil report. This was the first public assessment of the war in Iran’s impact on the market.
OPEC sees a smaller hit to oil demand from the war this year than some other forecasters, such as the U.S. government's Energy Information Administration. OPEC also made no change to its full-year outlook as it sees consumption rebounding in later months, News.Az reports, citing foreign media.
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The war has effectively closed the Strait of Hormuz, the world’s most important oil route, shutting in millions of barrels of Middle East production and sending fuel prices soaring. The price surge is pressuring consumers and businesses across the globe, and triggering government action to conserve supplies.
Global oil demand is projected to average 105.07 million bpd in the second quarter, OPEC's report said, down from the 105.57 million bpd forecast in last month's report.
"The demand growth for the second quarter of 2026 is revised down for both the OECD and non-OECD, driven mainly by slight transitory weakness in oil demand growth, given ongoing developments in the Middle East," OPEC said, referring to countries inside or outside the Organisation for Economic Co-operation and Development grouping of industrialised nations.
By Ulviyya Salmanli
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