By: AGBI

Opec has raised its forecast for global oil demand next year and trimmed its forecast for growth in supply from the United States and other producers outside the wider Opec+ group, pointing to a tighter market outlook.

World oil demand will rise by 1.38 million barrels per day (bpd) in 2026, the Organization of the Petroleum Exporting Countries said in a monthly report.

This is an increase of 100,000 bpd from the previous forecast. This year’s expectation was left unchanged.

Oil supply from countries outside the Declaration of Cooperation, the formal name for Opec+, which groups Opec with Russia and other allies, will rise by about 630,000 barrels per day in 2026, Opec said, down from last month’s forecast of 730,000 bpd.

The outlook for higher demand and a drop in supply growth from outside Opec+ would make it easier for the group to proceed with its plan to pump more barrels to regain market share after years of cuts aimed at supporting the market.

The report also showed that in July, Opec+ raised crude output by 335,000 bpd, a further increase reflecting its decisions this year to increase output quotas.