Key Takeaways

The Organization of the Petroleum Exporting Countries (OPEC) on Wednesday affirmed its growth outlook for oil demand and overall economic growth over the next two years.

The cartel said that it is maintaining its demand growth projection of 1.4 million barrels per day for 2025 and 2026, and said it expects the global economy to grow by 3.1% this year and 3.2% next year. The group said it has seen strong demand from the air travel and automotive industries.

Earlier this month, OPEC said its member countries agreed to proceed with their plan to increase oil production starting April 1, eventually looking to lift production by 2.2 million barrels per day.

Global Economy 'Expected to Adjust' to Tariffs, Trade Disputes

"This forecast remains unchanged from the previous [Monthly Oil Market Report] despite trade challenges and potential developments in geopolitical dynamics," OPEC said in its monthly report for March. "Trade concerns are expected to contribute to volatility as trade policies continue to be unveiled. However, the global economy is expected to adjust."

The group said it is monitoring the impact of the Trump administration's various tariff proposals on the global economy.

"[I]t remains to be seen how and to what extent potential tariffs and other policy measures will play out," the report said. "So far, they are not anticipated to materially impact current underlying growth assumptions, but the outcome of potentially further rising uncertainties and the scope and significance of potential tariffs and other policy measures will need close monitoring."

The group predicted that the industrial sector in the U.S., Mexico, and Canada will likely "face major challenges adjusting to tariffs," with "potentially significant" negative effects in the short term. The uncertainty that the tariff situation has created could also negatively affect consumer spending , according to OPEC.

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