The Organization of the Petroleum Exporting Countries (OPEC) has lowered its forecast for global oil demand this year to 970,000 barrels per day.
June marks the second consecutive month that the oil cartel has revised down its demand forecast.
OPEC has said that it needs to adjust its outlook for global crude oil demand as the war in Iran drags into its fourth month, with no end in sight.
However, OPEC’s latest forecast of 970,000 barrels of oil demand per day is more optimistic than the view of other energy forecasters.
The U.S. Energy Information Administration and the International Energy Agency both project oil demand will decline more rapidly in 2026, citing the impact of the Iran war on consumption.
OPEC also continues to see better days ahead, raising its forecast for oil demand growth in 2027 on expectations that the Iran war will end by then.
Brent crude oil, the international standard, is currently trading at $93.01 U.S. per barrel, having risen about 40% since the U.S. and Israel attacked Iran on Feb. 28.
The Strait of Hormuz waterway near Iran remains effectively closed. Typically, about 20% of the world’s crude oil is shipped through the strait.
