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ENB Pub Note: How this plays into the OPEC and OPEC+ production quotas has yet to be announced. We know that Saudi Arabia needs the 80 dollar range of oil for its fiscal budgets for its social programs, so we may see some production activity announced in the next meeting. The problems with the OPEC and OPEC+ groups are tied to the availability of cash. When countries need money, they can either print money, like in the United States’ case, or drill for more oil and gas. Much like Russia and Iran.
- OPEC sees President Donald Trump’s tariffs weighing on crude oil demand and global economic growth.
- Key members of OPEC+ will accelerate oil production even as demand and economic growth soften.
OPEC on Monday cut its oil demand growth forecast for 2025 and 2026 as President Donald Trump’s tariffs weigh on global economic growth.
The cartel now sees demand for crude growing by 1.3 million barrels per day this year and next year, down about 150,000 bpd from its previous estimates. OPEC also lowered its global economic growth forecast to 3% and 3.1% for 2025 and 2026, respectively, taking both estimates down 0.1 percentage point from its prior outlook.
Trump has slapped 145% tariffs on China, the world’s second-biggest economy and largest crude importer. The president has imposed 10% tariffs on most other countries during a 90-day period that allows for trade negotiations. More industry-specific tariffs on pharmaceuticals and semiconductors may be on the way.
Key members of the broader OPEC+ group have agreed to accelerate oil production starting in May even as OPEC sees slightly lower demand for crude and softer economic growth.
Trump’s trade war and the OPEC+ decision to accelerate output has weighed heavily on prices this month. Crude oil futures are down about 13% since Trump announced his sweeping tariff plan on April 2.
U.S. crude oil and global benchmark Brent were trading more than 1% higher on Monday.
The post Energy OPEC cuts oil demand forecast, sees growing economic uncertainty on Trump trade war appeared first on Energy News Beat.
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