OPEC Sees No Demand Peak to 2050 as Saudi Tankers Restart Hormuz Flows
BNO•OPEC raised its long-term oil demand forecast, projecting uninterrupted growth through 2050 on supportive policies. Resumption of Strait of Hormuz flows by Saudi supertankers could release millions of barrels into markets, triggering price declines and pressuring oil fund valuations.
1. OPEC Long-Term Demand Outlook
OPEC maintained robust oil demand growth projections for the next four years and nudged up its longer-term forecast, citing policy support that will sustain consumption with no sign of a demand peak before 2050.
2. Strait of Hormuz Reopening
Saudi state supertankers and other vessels have begun crossing the Strait of Hormuz, marking the first large-scale flows since the Iran war began and potentially unlocking millions of barrels of Gulf crude into global markets.
3. Market Implications for Oil Funds
The anticipated influx of Middle Eastern oil is expected to weigh on Brent prices, as traders factor in rapid supply restarts and IMF guidance pointing to price easing, creating downward pressure on oil ETF valuations.
