OPEC has marginally reduced its 2025 global oil demand growth projection to 1.3 million barrels per day (bpd), down from 1.4 million bpd, citing economic uncertainties sparked by US trade tariffs.
The cartel’s benchmark oil price fell to $66.25/barrel this week amid market volatility.
In its April market report, OPEC acknowledged “higher uncertainty” in the global economic outlook due to trade disputes, though it maintained stable long-term forecasts.
The adjustment follows OPEC+’s March production cut of 37,000 bpd to 41.02 million bpd, with Nigeria and Iraq leading reductions.
Eight OPEC+ members, including Saudi Arabia and Russia, confirmed plans for a gradual return of voluntary cuts starting April 2025.
The alliance will implement a 411,000 bpd adjustment in May – incorporating three months’ planned increments – while reserving flexibility to “pause or reverse” changes based on market conditions.
OPEC+ will reconvene on 5 May to review June production levels, maintaining its strategy of market-driven supply management.
