OPEC slightly lowered its forecast for oil demand growth on Monday, citing the impact of US tariffs on the world economy.
The Saudi-led oil cartel said in a monthly report that it now expects demand to grow by 1.3 million barrels per day (bpd) in 2025, down from a previous forecast of 1.4 million bpd.
The “minor adjustment” was mainly due to first-quarter data and “the expected impact on oil demand given recently announced US tariffs”.
The Organization of the Petroleum Exporting Countries now sees global demand reaching a total 105.05 million bpd this year.
It also slightly lowered its global economic growth forecast to three per cent.
“The global economy showed a steady growth trend at the beginning of the year. However, the near-term trajectory is now subject to higher uncertainty given the recent tariff-related dynamics,” OPEC said in the report.
Oil prices sank to a four-year low last week, dipping under $60 per barrel over concerns about the impact of President Donald Trump’s tariffs.
Prices were up on Monday, with the international benchmark futures contract, Brent North Sea crude, rising 1.3% to $65.62 per barrel.
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