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Market Chatter: OPEC to Maintain Oil Demand Growth Forecast Despite Middle East Conflict

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The Organization of the Petroleum Exporting Countries expects oil demand growth to remain "robust" despite the ongoing geopolitical tensions in the Middle East, and will maintain its estimate of 1.2 million barrels per day for this year, Reuters reported Thursday, citing Secretary General Haitham Al Ghais.

The organization has not seen any signs of weakening demand, Al Ghais reportedly said at the St Petersburg International Economic Forum, contrary to other views.

The International Energy Agency last month estimated 2026 global oil demand to contract year over year by 420,000 barrels per day.

OPEC did not immediately respond to' request for comment.

Deputy Prime Minister Alexander Novak, during the same event, said uncertainties surrounding the oil demand outlook have increased, although OPEC and its allies are able to offset global changes in the energy sector, Reuters reported.

Saudi Energy Minister Prince Abdulaziz bin Salman also attended the forum and reportedly called for stabilization in the energy sector, amid challenges and uncertainties brought about by the US-Iran and Russia-Ukraine wars.

Shipping restrictions through the Strait of Hormuz have forced Gulf OPEC members to cut their oil exports.

Nonetheless, sources cited by the news agency said that Saudi Arabia, Russia and five other OPEC+ countries will likely agree to further raise their output targets for July when they meet on Sunday.

This is despite the disruptions in oil flow, which have rendered the previous agreements on output hikes largely theoretical.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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