OPEC cuts oil demand demand prospects amid the US tariff -hit despite the output increase

Copyright © HT Digital Streams Limit all rights reserved. Giulia Petroni, The Wall Street Journal 2 min Read 14 Apr 2025, 06:15 pm is a view of Aramco’s oil field in the empty quarter, Shaybah, Saudi Arabia. (File Photo: Reuters) Summary The organization of the Petroleum Exporting Countries has reduced its prediction for the growth of oil question a few days after a surprising decision to increase production, citing the impact of US rates on the global economy and crude consumption. The organization of the petroleum exporting countries has reduced its prediction for oil demand for a surprising decision to increase production, citing the impact of US rates on the global economy and crude consumption. The Vienna-based Cartel now expects the demand to rise by 1.3 million barrels per day this year and 1.28 million barrels per day the next day, compared to previous forecasts of 1.45 million barrels and 1.43 million barrels per day respectively. “The demand for oil is expected to be supported by strong demand for air journey and healthy road mobility,” he said on Monday. “However, this forecast is subject to uncertainties about global economic developments amid the new trading tariffs announced by the US.” In the afternoon trading in Europe, Brent Crude, the International Energy Benchmark, was about $ 65 a barrel, while the US oil meter Westerntexas intermediate traded about $ 62 a barrel. Oil prices dropped to a four-year low last week, as the fear of a tariff-induced recession has been swept by global markets, causing a broad sales assets and causing concern about the outlook on the rough demand. Meanwhile, OPEC and its allies – who pump more than half of the world’s crude oil – have not decided to increase the offer by 411,000 barrels a day in May, the equivalent of three monthly hikes among its previous plans. The move further dragged over the tariff hit crude prices, attracting the concerns about a global supply surplus. The forecast forecast of the Kartel’s oil question remains particularly optimistic than others in the industry, with the international energy agency currently estimating the growth of this year at 1.03 million barrels per day. US President Trump’s livestock tariffs also weigh the global economy, which asked OPEC to review its growth forecast for this year and next to 3% and 3.1%, lower than previous forecasts of 3.1% and 3.2%. “In 2025, global economic growth began with strong fundamentals and resilience in large economies,” the cartel said. “However, recent developments in global trade relations have shifted the outlook and introduced new uncertainties amid an increasing increase in US -China rates.” Economic growth in the US is now seen at 2.1% in 2025 from 2.4% before, and in 2026 at 2.2%. The eurozone economy is expected to grow by 0.8% and 1.1% in the same periods. In March, total OPEC crude oil production fell by 78,000 barrels per day to 26.78 million barrels per day. The total production of countries participating in the collaboration – or doc, the formal name of the cartel for OPEC+ – Fell with 37,000 barrels per day to 41.02 million barrels per day. However, OPEC and its allies are struggling with compliance issues, as countries such as Kazakhstan and the UAE have not repeatedly reached their production targets. Kazakhstan production rose 37,000 barrels a day to 1.85 million barrels per day last month. OPEC has also revised its forecast for the growth of the supply of countries that did not participate in the DOC, reducing the estimates to 900,000 million barrels per day for both 2025 and 2026, saying the US, Brazil, Canada and Argentina are expected to drive the increase. Write to Giulia Petroni at [email protected], catch all the commodity news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #Openec #crude Oil Prices #crude Oil Mint Special