OPEC Cuts 2025 Oil Demand Forecast
The Organization of the Petroleum Exporting Countries (OPEC) has lowered its 2025 global oil demand growth forecast, citing recent U.S. tariff announcements and weaker-than-expected data from the first quarter.
The group also trimmed its global economic growth projections for both this year and next.
In its latest monthly report published Monday, OPEC said it now expects world oil demand to rise by 1.30 million barrels per day (bpd) in 2025 — down 150,000 bpd from its previous forecast.
“The global economy showed a steady growth trend at the beginning of the year. However, recent trade-related dynamics have introduced higher uncertainty to the short-term global economic growth outlook,” the report stated.
Despite the downgrade, OPEC’s demand forecast remains among the highest in the industry. The organization maintains that oil use will continue to rise for years to come — a view that contrasts with that of the International Energy Agency (IEA), which expects global demand to peak this decade as the energy sector transitions to cleaner sources.
Tariff Turbulence, Market Reactions
The downgrade comes amid growing concerns over the escalating trade war between the United States and China. President Donald Trump’s administration has announced a series of new tariffs in recent weeks, only to partially roll some back. Late Friday, the White House granted exclusions on smartphones, computers, and some other electronics, attempting to ease pressure on consumers and tech giants like Apple and NVIDIA.
However, President Trump has said new tariffs on imported semiconductors are expected to be announced in the coming week.
Oil prices rose modestly Monday in response to the tariff exclusions and Chinese customs data showing a sharp rebound in crude imports for March. Still, analysts say ongoing geopolitical tensions could cap further gains.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a "detective-like" mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
