KEY TAKEAWAYS
- The International Energy Agency on Tuesday cut its projection for oil demand growth this year and the next, blaming the toll on the global economy from President Donald Trump’s tariffs.
- The move follows a cut by OPEC yesterday of its oil demand growth forecasts.
- The IEA said it made the new forecasts after lowering its assumptions for economic growth.
The International Energy Agency on Tuesday cut its projection for oil demand growth this year and the next, blaming the toll on the global economy from President Donald Trump’s tariffs.
The agency said that it is lowering its forecast for oil demand growth this year to 730,000 barrels per day (B/D), a decline of 300,000 barrels per day versus last month’s projection. It also said that 2026 oil demand growth will slow even more, at 690,00 barrels per day. The agency said it made these new forecasts after lowering its assumptions for economic growth.
The downgrade marks much lower oil demand forecasts than those from the Organization of the Petroleum Exporting Countries (OPEC). OPEC yesterday also cut its projections due to tariffs weighing on economic growth.
The IEA said Tuesday that “with arduous trade negotiations expected to take place during the coming 90-day reprieve on tariffs and possibly beyond, oil markets are in for a bumpy ride and considerable uncertainties hang over our forecasts for this year and next.”
Brent and West Texas Intermediate crude futures were both slightly lower in recent trading.
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