OPEC, IEA diverge on oil demand

The Express Tribune reported that OPEC cut its 2026 forecast for global oil demand growth to 580,000 barrels per day in its monthly report released on Wednesday. It was the fourth consecutive downward revision from the producer group. Even so, OPEC sees the Iran war weighing less on consumption than other forecasters do.

The International Energy Agency, by contrast, expects oil demand to fall in 2026. OPEC also raised its 2027 demand growth forecast. The two bodies thus hold opposing views on 2026 demand.

Separately, the IEA said on Wednesday that world oil supply will shrink by 4.3 million barrels a day, around 4%, this year. The agency attributes the drop to fresh fighting in the Middle East that is disrupting flows. Taken together, the two reports present very different outlooks for the oil market.