OPEC cuts global oil demand forecast, sees recovery deferred to 2027

The Organization of Petroleum Exporting Countries (OPEC) has sharply lowered its 2026 global oil demand growth forecast to 400,000 barrels per day, down from an earlier projection of 1.4 million barrels, Secretary General Haitham Al Ghais said Monday.

Speaking at the 25th WPC Energy Congress in Riyadh, Saudi Arabia, Al Ghais attributed the sharp downward revision to broader economic headwinds and shifting consumption developments recorded throughout the year. He emphasized that this unused demand has not disappeared entirely, but rather been deferred, with OPEC expecting pent-up consumption to gradually materialize in 2027.

Al Ghais also highlighted that global primary energy demand is projected to rise 23 percent by 2050, warning that widespread underinvestment across energy production is already squeezing key sectors such as oil refining.