OPEC cuts its 2026 global oil demand growth forecast for a second straight month to 970,000 b/d

In its July 2026 Monthly Oil Market Report, OPEC cut its forecast for 2026 global oil demand growth to about 970,000 barrels per day, down from a previous estimate of 1.17 million b/d and the second consecutive monthly downgrade.

OPEC attributed part of the cut to a 60,000 b/d reduction in India's demand growth and a roughly 40,000 b/d fall in West Asia consumption. The report estimates that West Asia oil demand in March, the first month of the Iran war, was about 500,000 b/d lower than a year earlier.

For 2027, however, OPEC is more optimistic, projecting demand growth of about 1.7 million b/d, an upward revision of roughly 0.2 million b/d from the previous month, driven mainly by China and India.