The Organization of the Petroleum Exporting Countries and its allies (OPEC+) has cut its %Oil demand forecast for 2025 and 2026, saying that tariffs are impacting the global economy.
The oil cartel now sees demand for crude growing by 1.3 million barrels per day this year and next year combined. That’s down about 150,000 barrels per day from previous estimates.
OPEC+ also lowered its global economic growth forecast to 3% and 3.1% for 2025 and 2026, down about 0.1 percentage points for each year.
“Recent trade related dynamics have introduced higher uncertainty to the short-term global economic growth outlook,” said OPEC+ in its monthly oil market report.
OPEC+ singled out U.S. President Donald Trump’s 145% tariffs on China, the world’s biggest crude importer, as having a negative impact on energy demand over the next two years.
Despite the lowered outlook, OPEC+ recently agreed as a group to increase oil production starting in May of this year.
The increased crude oil production has many analysts worried that OPEC+ could swamp the market with crude at a time of weak global demand.
The current situation has pushed oil prices lower, with crude down about 13% since President Trump announced sweeping reciprocal tariffs on April 2 of this year.
Brent crude oil, the international standard, is currently trading at $64.42 U.S. per barrel, down nearly 1% on April 15.
