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Kuwait Times
4 days ago
- Business
- Kuwait Times
OPEC sees solid 2nd-half of 2025 for world economy
ISLAMABAD: An employee fills the tank of a motorbike at a fuel station in Islamabad on June 16, 2025, after a hike in prices of petroleum products by the government. Oil prices extended gains on June 16 as Israel and Iran pounded each other with missiles for a fourth day and threatened further attacks, stoking fears of a lengthy conflict that could reignite inflation. - AFP LONDON: OPEC said on Monday it expected the global economy to remain resilient in the second half of this year despite concerns about trade conflicts and trimmed its forecast for growth in oil supply from producers outside the wider OPEC+ group in 2026. In a monthly report, the Organization of the Petroleum Exporting Countries left its forecasts for global oil demand growth unchanged in 2025 and 2026, after reductions in April, saying the economic outlook was robust despite trade concerns. 'The global economy has outperformed expectations so far in the first half of 2025,' OPEC said in the report. 'This strong base from the first half of 2025 is anticipated to provide support and sufficient momentum into a sound second half of 2025. However, the growth trend is expected to moderate slightly on a quarterly basis.' OPEC also said supply from countries outside the Declaration of Cooperation - the formal name for OPEC+ - will rise by about 730,000 barrels per day in 2026, down 70,000 bpd from last month's forecast. Lower supply growth from outside OPEC+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, would make it easier for the wider group to balance the market. Rapid growth from US shale and from other countries has weighed on prices in recent years. — Reuters
The Star
5 days ago
- Business
- The Star
OPEC sees solid second-half of 2025 for world economy, trims 2026 supply
FILE PHOTO: A 3D-printed oil pump jack is seen in front of displayed OPEC logo in this illustration picture. REUTERS/Dado Ruvic LONDON/MOSCOW: OPEC said on Monday it expected the global economy to remain resilient in the second half of this year despite concerns about trade conflicts and trimmed its forecast for growth in oil supply from producers outside the wider OPEC+ group in 2026. In a monthly report, the Organization of the Petroleum Exporting Countries left its forecasts for global oil demand growth unchanged in 2025 and 2026, after reductions in April, saying the economic outlook was robust despite trade concerns. "The global economy has outperformed expectations so far in the first half of 2025," OPEC said in the report. "This strong base from the first half of 2025 is anticipated to provide support and sufficient momentum into a sound second half of 2025. However, the growth trend is expected to moderate slightly on a quarterly basis." OPEC also said supply from countries outside the Declaration of Cooperation - the formal name for OPEC+ - will rise by about 730,000 barrels per day in 2026, down 70,000 bpd from last month's forecast. Lower supply growth from outside OPEC+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, would make it easier for the wider group to balance the market. Rapid growth from U.S. shale and from other countries has weighed on prices in recent years. - Reuters
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Business Standard
5 days ago
- Business
- Business Standard
OPEC sees solid second-half of 2025 for world economy, trims 2026 supply
OPEC said on Monday it expected the global economy to remain resilient in the second half of this year despite concerns about trade conflicts and trimmed its forecast for growth in oil supply from producers outside the wider OPEC+ group in 2026. In a monthly report, the Organization of the Petroleum Exporting Countries left its forecasts for global oil demand growth unchanged in 2025 and 2026, after reductions in April, saying the economic outlook was robust despite trade concerns. "The global economy has outperformed expectations so far in the first half of 2025," OPEC said in the report. "This strong base from the first half of 2025 is anticipated to provide support and sufficient momentum into a sound second half of 2025. However, the growth trend is expected to moderate slightly on a quarterly basis." OPEC also said supply from countries outside the Declaration of Cooperation - the formal name for OPEC+ - will rise by about 730,000 barrels per day in 2026, down 70,000 bpd from last month's forecast. Lower supply growth from outside OPEC+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, would make it easier for the wider group to balance the market. Rapid growth from U.S. shale and from other countries has weighed on prices in recent years.
Straits Times
5 days ago
- Business
- Straits Times
OPEC expects solid second-half of 2025 for world economy, trims 2026 supply
Oil jumped on June 13 nearing US$80 a barrel after air strikes by Israel and Iran raised concern about supply. PHOTO: REUTERS LONDON - OPEC said on Monday it expected the global economy to remain resilient in the second half of this year and trimmed its forecast for growth in oil supply from the United States and other producers outside the wider OPEC+ group in 2026. In a monthly report which did not mention the Israel-Iran conflict, the Organization of the Petroleum Exporting Countries also left its forecasts for global oil demand growth unchanged in 2025 and 2026, after reductions in April. It said the economic outlook was robust despite trade concerns. A solid economy shrugging off trade conflicts and a slowdown in supply growth outside OPEC+ - which groups OPEC plus Russia and other allies - would make it easier for OPEC+ to balance the oil market. Rapid growth from U.S. shale and from other countries has weighed on prices in recent years. 'The global economy has outperformed expectations so far in the first half of 2025,' OPEC said in the report. 'This strong base from the first half of 2025 is anticipated to provide support and sufficient momentum into a sound second half of 2025. However, the growth trend is expected to moderate slightly on a quarterly basis.' Oil jumped on Friday nearing US$80 a barrel after air strikes by Israel and Iran raised concern about regional supply, having in recent weeks come under pressure from OPEC+'s output hikes and from U.S. President Donald Trump's tariffs. Sources have told Reuters that behind OPEC+'s plan to ramp up oil output more rapidly in May, June and July than first planned is also the objective of taking on U.S. shale production to win back market share. In the report, OPEC said supply from countries outside the Declaration of Cooperation - the formal name for OPEC+ - will rise by about 730,000 barrels per day in 2026, down 70,000 bpd from last month's forecast. OPEC now expects U.S. output of tight oil, another term for shale, to hold steady next year at 9.05 million barrels per day. Last month, it expected small growth year on year and in January had forecast output in 2026 would reach 9.28 million bpd. 'The 2026 forecast assumes sustained capital discipline, further drilling and completion efficiency gains, weaker momentum in drilling activities and increased associated gas production in key shale oil regions,' OPEC said of tight oil. OPEC's report also found production by OPEC+ rose in May by 180,000 bpd to 41.23 million bpd, less than the 411,000 bpd hike called for by the group's increase in its May quotas. The actual hike was smaller than the headline increase in quotas partly because some nations, such as Iraq, cut output as part of a pledge to make further reductions for earlier pumping above targets. Output in Kazakhstan, which is under pressure to boost compliance with OPEC+ quotas, also declined, falling by 21,000 bpd in May to 1.803 million bpd, still above its quota. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Mint
5 days ago
- Business
- Mint
OPEC sees lower supply growth from rivals, keeps demand outlook steady
The Organization of the Petroleum Exporting Countries trimmed next year's forecast for supply growth from the U.S. and other rivals while keeping its oil demand expectations unchanged as it continues to ramp up production. The Vienna-based cartel expects supply from producers outside of the wider OPEC+ alliance to rise by 730,000 barrels a day in 2026, down from 800,000 barrels a day previously. U.S. oil output is projected to grow by 210,000 barrels a day, compared with previous expectations of a 280,000 barrels-a-day increase, reflecting lower capital spending and a slowdown in drilling activity. In afternoon trading in Europe, Brent crude, the international energy benchmark, stood above $73 a barrel, while the U.S. oil gauge West Texas Intermediate traded at around $72 a barrel. Oil prices spiked last week after Israel launched a series of strikes against Iran, shaking global markets and stoking fears of a regional conflict that could severely disrupt global energy flows. OPEC's latest report made no direct reference to the current conflict between Israel and Iran. The market's greatest fear is that Iran could close the Strait of Hormuz, a vital shipping chokepoint through which roughly a third of the world's oil passes. Analysts say any disruption to supply could prompt OPEC+ to adjust its strategy and bring back supply more quickly than anticipated. But the cartel–which sits on more than 5 million barrels a day of spare capacity–appears to be in wait-and-see mode and hasn't made any plans to hold an extraordinary policy meeting. OPEC+'s next meeting is currently scheduled for July 6, when members are expected to agree to another large supply increase as part of efforts to regain some market share and rein in overproducers. At the end of May, the cartel and its allies–which pump more than half of the world's crude oil–decided they will increase supply by 411,000 barrels a day for a third straight month in July. Meanwhile, OPEC's global oil-demand growth forecast remained broadly unchanged at 1.29 million barrels a day this year and 1.28 million barrels a day the next, supported by strong air-travel demand and healthy road mobility. OPEC also kept its estimates for global economic growth steady, saying that while trade-related distortions are expected to ease, some tariff risks might persist. Overall OPEC crude-oil production rose by 183,000 barrels a day to 27.02 million barrels a day last month, driven by Saudi Arabia. The total production of countries participating in the Declaration of Cooperation–or DoC, the cartel's formal name for OPEC+–increased by 180,000 barrels a day to 41.23 million barrels a day. Output from Kazakhstan, which has repeatedly created tensions within the group by exceeding its production quotas, fell by 21,000 barrels a day last month to 1.80 million barrels a day. Write to Giulia Petroni at
