The Organization of the Petroleum Exporting Countries again cut its forecast for global oil-demand growth for this year, as stalled talks to reopen the critical Strait of Hormuz waterway and risks in the Red Sea prolong disruptions to global supplies.
The group of oil-rich countries now expects global oil demand to grow by 580,000 barrels a day, down from 780,000 barrels a day previously. Next year's demand growth is instead seen at 2.16 million barrels a day, up from a previous estimate of 1.94 million barrels a day.
OPEC's projections remain far more optimistic than those of other forecasters. The International Energy Agency said earlier on Wednesday that it expects demand to decline by 1.6 million barrels a day this year, as high fuel prices weigh on consumption.
Crude production among OPEC members rose by 1.66 million barrels a day to 23.63 million barrels a day in July, led by gains in Kuwait, Iraq and Saudi Arabia, as a temporary ceasefire gave Gulf producers room to ramp up output.
The figures still include the United Arab Emirates, which left OPEC at the beginning of May. Output from the broader OPEC+ alliance rose by roughly 1.42 million barrels a day to 37.65 million barrels a day.
Talks to end the Iran war and reopen the Strait of Hormuz hit an impasse this week, prolonging disruptions to shipping through one of the world's most important oil chokepoints. President Trump has turned to economic pressure as his next step, holding off on further strikes while giving sanctions and a naval blockade more time to take effect.
The Strait of Hormuz normally carries roughly a fifth of the world's oil and is the main export route for Gulf producers shipping crude to Asian markets. Disruptions have also affected traffic through the Bab al-Mandeb Strait, another critical route for Middle Eastern oil and gas.
In early U.S. trading, Brent crude, the international oil benchmark, was around $89 a barrel, while the U.S. oil gauge West Texas Intermediate traded above $83 a barrel.
OPEC's closely watched monthly report comes after OPEC+ producers agreed to raise output again in September, a move that would complete the group's planned return of voluntarily withheld barrels to the market.