Organization of the Petroleum Exporting Countries Lowers Oil Demand Forecast
Analysis based on 6 articles · First reported Apr 13, 2026 · Last updated Apr 13, 2026
The OPEC's lowered oil demand forecast and the closure of the Strait of Hormuz due to the Iran war are causing fuel prices to soar, leading to widespread inflation fears and pressuring global consumers and businesses. This situation is creating market uncertainty and a focus on corporate earnings, with some analysts warning of stagflation.
OPEC has lowered its forecast for world oil demand in the second quarter of 2026 by 500,000 barrels per day, citing the ongoing Iran war and its impact on the Middle East. The conflict has led to the effective closure of the Strait of Hormuz, a crucial oil route, resulting in millions of barrels of Middle East production being shut in and a significant surge in fuel prices. Crude oil output by OPEC+ plunged by 7.70 million bpd in March, with Iraq and Saudi Arabia making the largest cuts. Despite an agreement by OPEC+ to raise oil output quotas for May, the inability of key members to increase production due to the Hormuz blockage means this rise will largely exist on paper. The price surge is fueling concerns about inflation and stagflation globally, prompting government actions to conserve supplies and impacting corporate earnings.
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