Published 1h ago2026-09-10 12:49:01

OPEC Lowers 2026 Global Oil Demand Outlook Amid High Energy Prices

The Organization of the Petroleum Exporting Countries cut its global oil demand outlook for 2026 on Thursday as high energy prices are expected to weigh on consumption.

The cartel now expects oil consumption to increase by 380,000 barrels this year, down from its prior forecast that called for a gain of 580,000 barrels.

US crude oil prices surged past $100 per barrel on Thursday, a day after global benchmark Brent breached the same threshold amid intensifying tensions between the US and Iran. The renewed flare-up has sparked fears of prolonged supply disruptions.

Both West Texas Intermediate and Brent are up about 16% each so far this month, having logged gains in July and August.

The average diesel price in the US hit a fresh record high at $5.9773 per gallon on Thursday, according to AAA motor club data. The regular gas price rose to $4.2770 per gallon from $$4.0091 a month ago.

For 2027, OPEC now projects world oil demand to rise by 2.36 million barrels a day, compared with an increase of 2.16 million barrels estimated in August.

OPEC reiterated its outlook for an increase in liquids production from countries not participating in the Declaration of Cooperation, or DoC, by 640,000 barrels a day this year. The DoC is the name for OPEC+, which comprises OPEC and non-OPEC allies. Liquids production includes crude oil, condensate and natural gas liquids.

Last week, seven members of OPEC+ agreed to maintain output targets for October at the same level as September. The group previously decided to implement a production adjustment of 188,000 barrels a day this month.

The cartel continues to anticipate the world economy to expand at rates of 3% and 3.2% in 2026 and 2027, respectively. Growth projections for the US were left unchanged at 2.2% and 2% for the current and following years.

"Economic growth data from (the first half of 2026) confirmed robust growth momentum in the world economy," the organization said. "This is despite a challenging external environment marked by the economic repercussions of geopolitical tensions, renewed inflationary challenges, and uncertainty surrounding US tariffs, among other factors."

Major economies have entered the second half with "encouraging momentum," according to OPEC. The global resilience is expected to sustain through the end of 2026, driven by an artificial intelligence boom and consumer spending across major economies, the cartel added.

What else is happening in US Markets?

US Markets21h ago

Update: Wall Street Extends Losing Streak to Third Day Amid Middle East Tensions

(Updates with market moves at the end of the day, and other changes, if any.)US stocks fell for the third straight session on Wednesday as heightened Middle East tensions sent oil prices higher, fanning inflation fears ahead of next week's Federal Reserve policy meeting.The Dow Jones Industrial Average closed 0.8% lower at 52,380.66, while the Nasdaq Composite shed 0.6% to 26,253.34. The S&P 500 dropped 0.5% to 7,636.36.Except energy, all sectors ended in the red, led by industrials.Global oil price benchmark Brent was up 3.6% at $101.45 a barrel in Wednesday late-afternoon trade, breaching the $100 threshold for the first time since late July. West Texas Intermediate climbed 3.9% to $96.64.Iran said Wednesday it attacked 10 ships near the Strait of Hormuz -- a key crude and energy chokepoint, Reuters reported. Tehran reportedly launched ballistic missiles at a base used by US forces in Jordan.That followed American forces destroying five Iranian crude oil carriers in response to Tehran firing ballistic missiles at a US navy warship, the US Central Command said Tuesday.Yemen's Iran-allied Houthi group said Wednesday that Saudi-backed forces launched airstrikes overnight across four Yemeni provinces, the Associated Press reported. The Houthis previously struck civilian and economic sites in Saudi Arabia on Tuesday, including Saudi Aramco's facilities."Together, these developments point to continued supply tightness and an elevated risk of further price gains," Saxo Bank said Wednesday in a report.The average diesel price in the US hit a fresh record high at $5.9424 per gallon, up from Tuesday's $5.9012, according to data from AAA, a travel organization that tracks fuel prices in the world's biggest economy. The regular gas price rose to $4.2245 per gallon from $4.1514.The upward pressure on energy prices comes as markets await a new set of inflation data, with a report on wholesale prices for August due on Thursday, to be followed by consumer inflation numbers for the same month on Friday.Fed Chair Kevin Warsh said late last month that the central bank should focus on its price stability mandate, in what came across as hawkish remarks amid concerns among other Fed officials over elevated inflation."Rising oil prices raise the risk of further inflationary pressures coming down the pipeline, increasing the argument for the (Federal Reserve) to act sooner than later," Stifel Chief Economist Lindsey Piegza said Wednesday in a report e-mailed to.Markets are pricing in a 60% probability that the Fed will raise the benchmark lending rate by 25 basis points at next week's policy meeting, with the remaining odds pointing to another Fed pause, according to the CME FedWatch tool.Treasury yields were higher, with the 10-yield yield up 3.7 basis points at 4.84% and the two-year yield rising 2.9 basis points to 4.43%.The 10-year rate hit the highest level since November 2023 on Wednesday, CNBC reported, even as the US Treasury Department announced a plan to repurchase up to $6 billion in longer-term government bonds, triple the amount initially outlined to investors.Last month, the Treasury announced it was upsizing its liquidity support buyback operations for longer-dated securities by "at least double" to $4 billion per operation.Casey's General Stores (CASY) shares slid 14%, the worst performer on the S&P 500, as the convenience store operator's fiscal first-quarter same-store sales growth missed Wall Street's estimates, even though earnings and revenue topped expectations.Meta Platforms (META) has launched a new personal artificial intelligence agent called Muse AI, which can send emails, book travel plans and continue working after users close the app. Meta shares jumped 6.6%, the second-biggest gain on the S&P 500.Spot gold gained about 1% to $4,397.45 per troy ounce, while silver advanced 1.3% to $67.86 per ounce.

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US Markets21h ago

Apple Enters Foldable Smartphone Market With IPhone Duo Launch

Apple (AAPL) unveiled its first foldable smartphone on Wednesday, entering a category currently led by Samsung.The foldable iPhone Duo starts at $1,999, Apple said in a statement. Pre-orders for the device begin on Oct. 16, ahead of the phone becoming available on Oct. 23.The iPhone Duo features the largest display ever on an iPhone, with a 7.6-inch display when unfolded, Apple said.The launch gives Apple an entry into the foldable smartphone market pioneered by Samsung. Earlier this year, the South Korean tech giant launched its Galaxy Z Fold8 at a starting price of $1,899.Apple unveiled the iPhone 18 Pro and its Pro Max version on Wednesday, with prices starting at $1,199 and $1,299, respectively. Both reflect a $100 hike on last year's comparable models.Pre-orders for the iPhone 18 Pro and Pro Max begin Saturday, with availability from Sept. 18.The foldable iPhone could contribute about $14 billion to Apple's December-quarter revenue, or 16% of total expected iPhone sales for the period, Morgan Stanley said in a note earlier this month."This may be Apple's most consequential iPhone launch since iPhone X," Morgan Stanley said at the time. "Apple's first foldable and the largest iPhone price increases in years creates a critical test of pricing power."The brokerage expected Apple to build 7 million to 8 million foldable devices in the second half of the year and up to 20 million across its first-generation product cycle.However, supply constraints may push significant shipments for the foldable iPhone to later in the fourth quarter, curbing an initial earnings boost, Tigress Financial Intelligence said in a note to clients Tuesday.Shares of Apple closed 0.3% lower on Wednesday, and have gained 16% this year.In July, Apple reported strong fiscal third-quarter results amid momentum in iPhone sales, though the company missed estimates for iPad and services revenue.

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US Markets22h ago

Treasury Expands Debt Buyback Size to $6 Billion

The US Treasury Department on Wednesday announced a plan to repurchase up to $6 billion in longer-term government bonds, triple the amount initially outlined to investors.Last month, the Treasury announced it was upsizing its liquidity support buyback operations for longer-dated securities by "at least double" to $4 billion per operation.At the time, Morgan Stanley economists viewed the expansion in bond buybacks as evidence that the Treasury had become uncomfortable with a rise in long-term interest rates.The Treasury said Wednesday that the $6 billion buyback operation will start at 1:40 pm ET Thursday and last for 20 minutes. Settlement is scheduled for Friday, according to a preliminary announcement.US Treasury yields were higher intraday Wednesday, with the 10-year rate up 3.3 basis points at 4.84%. That's the highest level since November 2023, according to CNBC.The 20-year yield rose 1.7 basis points to 5.29%, while the 30-year rate advanced 2.2 basis points to 5.29%.US government debt surpassed $40 trillion for the first time as of Aug. 18, news outlets reported at the time, citing Treasury Department data.Jefferies had termed the Treasury's August buyback announcement as a "surprise," saying the agency might further increase the size of such operations."In many ways, this is a bad look for Treasury as it gives the impression that they are worried about structural demand for the long-end of the curve," the brokerage said in a note to clients on Aug. 19. "Continued reliance on short-term funding increases Treasury's rollover risk, which could put additional pressure on term premia that offset the benefit from the additional buybacks."