The global oil market just got a reality check, and OPEC is sounding the alarm.
In a revised forecast released this week, the Organization of Petroleum Exporting Countries (OPEC) downgraded its expectations for oil demand growth in 2025. The new number? 1.3 million barrels per day—down from the previous 1.45 million.
What’s behind the dip? Two words: U.S. tariffs.
OPEC cited ongoing trade tensions between the U.S. and China, and broader concerns about how American protectionist policies are reshaping global markets. With the U.S. imposing tariffs on Chinese electric vehicles, batteries, and other energy-related technologies, the ripple effects are spreading—and oil consumption is getting caught in the crossfire.
“The macroeconomic impact of these measures is starting to reflect in energy markets,” one OPEC analyst said. “Reduced growth means reduced consumption.”
Interestingly, this warning comes at a time when OPEC countries had been planning to slightly boost production, hoping demand would rise. Now, they may have to pump the brakes.
Investors are watching closely. Oil prices have stayed relatively stable, but a continued cooling of demand could spell trouble for economies dependent on petroleum exports—Nigeria included.
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