OPEC leaves 2021 world oil demand growth forecast unchanged at 5.95 million bpd

Eren Sengezer FXStreet

In its latest monthly report, the Organization of the Petroleum Exporting Countries (OPEC) left its forecast for 2021 world oil demand growth unchanged at 5.95 million barrels per day (bpd), as reported by Reuters.

Additional takeaways

"OPEC cuts Q2 2021 world oil demand forecast by 300,000 bpd; raises Q3 and Q4 forecasts."

"India will face a negative economic recovery impact in Q2 but it is expected to continue improving its momentum in the second half."

"OPEC cuts forecast for 2021 non-OPEC oil supply growth by 230,000 bpd to 700,000 bpd, citing the impact on the US output of Texas freeze."

"OPEC oil output rose by 30,000 bpd in April to 25.08 million bpd as higher Iran supply offsets cuts mainly in Libya, Venezuela."

"OPEC raises 2021 forecast for global demand for its crude by 200,000 bpd to 27.7 million bpd."

Market reaction

Crude oil prices showed no immediate reaction to this report and the barrel of West Texas Intermediate (WTI) was last seen losing 0.82% on the day at $64.33.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD defends 1.3300 after strong UK PMI data

Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the American session on Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US July PMI data failed to trigger relevant price action.

EUR/USD climbs beyond 1.1400 as renewed Iran diplomacy hopes undermine safe-haven USD

The EUR/USD pair builds on a modest bullish gap opening and climbs back above the 1.1400 mark during the Asian session on Monday. The intraday move up is sponsored by a broadly weaker US Dollar, weighed down by renewed optimism over a diplomatic resolution to end a five-month-old US-Iran war.

Gold stays firm near $4,100 os Iran diplomacy hopes

Gold holds the bullish gap-up opening on Monday, around $4,100, as hopes of US-Iran peace talks weigh heavily on crude oil prices, easing inflation fears and tempering Fed rate-hike bets. Moreover, the optimism drags the safe-haven US Dollar away from a one-month top, touched on Friday, and supports the non-yielding bullion.

Week ahead: Fed, BoE and BoJ face inflation test as markets reprice interest rate paths

The US dollar gained against the other major currencies this week amid the escalating tensions in the Middle East as well as US President Trump’s decision to proceed with a new round of tariffs after previously imposed levies expired.

Australian Dollar outlook: Chances of another rally won’t be decided in Canberra, but in Washington

The Australian Dollar rode a rollercoaster in the first half of the year, hitting a four-year high and then correcting. The currency enters the second half with an outlook full of uncertainty due to renewed hostilities in the Middle East, which clouds the inflation outlook and interest rates.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.