IEA and OPEC say tariff uncertainty will slow growth in oil demand

The International Energy Agency and OPEC downgraded their forecast for oil demand growth, citing the trade upheaval generated by US President Donald Trump’s tariffs.

The IEA cut its expectations for oil demand growth for this year by about a third, and signalled that further revisions were possible depending on how Trump’s tariff policy evolves.

“While imports of oil, gas, and refined products were given exemptions from the tariffs announced by the United States, concerns that the measures could stoke inflation, slow economic growth, and intensify trade disputes weighed on oil prices,” the report said.

Meanwhile, OPEC lowered its growth forecast to 3.0% from 3.1% for this year, citing US tariffs and concerns over global economic growth.