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Global oil demand is expected to rise by 2.4 million barrels per day (mb/d) in 2027, with India and other Asian economies emerging as key drivers of consumption growth, according to the Organization of the Petroleum Exporting Countries (OPEC).
In its statement to the International Monetary and Financial Committee during the IMF-World Bank Annual Meetings, OPEC projected global oil demand to average 108.2 mb/d in 2027, compared with 105.8 mb/d in 2026. The anticipated increase would be supported by healthy economic activity, particularly in non-OECD (Organisation for Economic Co-operation and Development) economies, with transportation fuels and petrochemical feedstock expected to drive demand recovery. "With India and Other Asia expected to lead oil demand growth," the statement said, adding that China and the Middle East would also contribute significantly to the increase in consumption. For 2026, OPEC expects global oil demand to grow by around 0.4 mb/d, reflecting strong requirements from Latin America and non-OECD Asia, supported by economic activity, mobility, air travel and stable private investment. Demand in non-OECD economies is forecast to increase by around 0.5 mb/d this year to average 59.7 mb/d. In contrast, demand in OECD economies is expected to decline by about 110,000 barrels per day year-on-year to average 46.1 mb/d, with Europe and Asia-Pacific expected to record contractions. OPEC expects oil demand in OECD economies to recover by around 0.4 mb/d in 2027, led by Europe and Asia-Pacific, while demand in non-OECD economies is projected to increase by approximately 2 mb/d. On the supply side, liquids production from countries outside the Declaration of Cooperation (DoC) is forecast to rise by 0.6 mb/d in both 2026 and 2027. Brazil, the United States, Canada and Argentina are expected to drive growth this year, while Qatar, Canada, Brazil and Argentina are projected to lead in 2027. Meanwhile, global oil and gas exploration and production capital expenditure is expected to decline by around 2 per cent in 2026 to USD 613 billion, before increasing by 6 per cent to approximately USD 651 billion in 2027. OPEC said sustained investment in upstream production would remain essential to meeting future energy demand and maintaining adequate spare capacity. The organisation also highlighted continued resilience in global economic activity, forecasting global growth of 3 per cent in 2026 and 3.2 per cent in 2027, with India's growth projected at 6.6 per cent and 6.5 per cent, respectively. (ANI)
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