OPEC expects a sharp increase in oil demand in the third quarter, and after that, the balance of supply and demand will become tight.
The Oil Exporting Country (OPEC) organization expects a “very strong” surge in oil demand for the third quarter of 2025 (Q3), and the balance of supply and demand will be tightened after that. Reuters Reports, quote sources.
In partnership with allies, OPEC is set to increase oil production in response to the expected robust demand for the third quarter and the tough supply and demand that follows.
According to a report from the Russian media RIA, OPEC Executive Director Haitham Al Ghais conveyed these forecasts and highlighted the group’s strategy to rewind years of production cuts designed to strengthen the market, the report said.
The OPEC+ producer group, including Russia, has gradually reversed previous production cuts.
OPEC+ could sanction another significant production increase in September. This strategic move comes as an organization prepares for forecasted demand growth.
During a press conference at the OPEC seminar last week in Vienna, Haitham Al Ghais projected an annual demand increase of 1.3 million barrels per day (MBPD) by this year, driven by a strong global economy.
He was quoted as follows: “We’re seeing very strong demand growth, especially in the third quarter. This is one of the main fundamental factors that will drive groups from eight countries back into the market.”
Al Gais further said he witnessed a significant increase in demand in the fourth quarter, and that the market is expected to be balanced tighter.
in spite of Reduce global oil demand forecasts With China’s slowing economic growth, OPEC has raised its long-term outlook based on increased consumption in developing countries over the next four years.
The recently released global oil outlook for 2025 estimates that global demand will average 105Mbpd this year. This is expected to grow to an average of 106.3Mbpd in 2026 and rise to 111.6Mbpd by 2029.
“OPEC expects a surge in oil demand for the third quarter followed by a tight supply demand balance,” was originally created and published Offshore Technologya brand owned by GlobalData.
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