Natural Gas and Oil Forecast: OPEC Demand Cut Meets Hormuz Tensions What’s Next for Oil?
On August 1st, OPEC+ policies stated that an extra 188,000 barrels of oil could be produced with the possibility of pausing or reversing the increase of barrels due to market conditions worsening. Along these lines, OPEC expects there will be less global consumption and has continued to restrict the 2026 global oil demand growth forecast to 780,000 bpd.
Demand for Natural gas is being supported by the strong demand for liquefied natural gas. According to the US Energy Information Administration, LNG exports are expected to be 17 Bcf/day by 2026. At the same time, the US is expected to have natural gas inventories of 3,966 Bcf by the end of October 2026, approximately 5% over the 5-year average, with record production continuing to meet demand.