Informist mumbai

The US Energy Information Administration has lowered its forecast for global oil demand growth in 2025 to 800,000 barrels per day from its previous projection of 1 million barrels per day, the agency said in its Short-Term Energy Outlook for June. It has forecast the global oil demand growth for 2026 at 1.1 million barrels per day driven primarily by demand from non-Organization for Economic Co-operation and Development countries.

"Total non-OECD consumption grows by 900,000 barrels per day in 2025 and 1.0 million barrel per day in 2026, while OECD consumption is largely unchanged over the forecast," it said. 

Crude oil prices have plunged for the fourth consecutive month in May driven by expectations of rising global inventories that have resulted from slowing global oil demand growth and the accelerated unwinding of Organization of the Petroleum Exporting Countries and allies voluntary production cuts, which began in April, the agency said.  

On May 31, OPEC and allies members agreed to a third month of planned production increases in July, with the potential for revisions pending market conditions. These factors contribute to expectation that global oil production will exceed consumption over the forecast period, causing global oil inventories to build up and putting downward pressure on oil prices.