London: The Organization of the Petroleum Exporting Countries (OPEC) on Tuesday raised its forecast for global oil demand for 2026 and lowered its projections for supply growth from the United States and other producers outside the OPEC+ alliance, indicating a narrowing gap between market demand and supply.

The global oil demand is expected to increase by 1.38 million barrels per day in 2026, up by 100,000 barrels per day from previous forecasts, while maintaining its demand outlook for this year unchanged, OPEC stated in its monthly report.

It noted that oil supplies from OPEC+ member countries are projected to rise by approximately 630,000 barrels per day in 2026, down from last month's forecast of 730,000 barrels per day.

The report highlighted that OPEC+ increased its crude oil production by 335,000 barrels per day in July, an additional boost reflecting this year's decisions to raise production quotas.

Observers suggest that the forecasted increase in demand combined with the reduced supply growth from non-OPEC+ producers, which include OPEC, Russia, and other allies, will streamline the alliance's ability to advance its plan to infuse more crude oil, aiming to regain its market share after years of production cuts carried out to stabilize the market.

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