The Organization of the Petroleum Exporting Countries (OPEC) has reduced its global oil-demand forecast for this year from 780,000 barrels per day to 580,000 barrels per day. This downward revision reflects persistent challenges including stalled negotiations to reopen the critical Strait of Hormuz and ongoing security concerns in the Red Sea region that threaten supply chains. While OPEC maintains optimism compared to other forecasters, the International Energy Agency anticipates a decline of 1.6 million barrels per day globally due to high fuel prices.

In contrast, crude production among OPEC members surged to 23.63 million barrels per day in July, driven by increased output from Kuwait, Iraq, and Saudi Arabia following a temporary ceasefire.