OPEC forecasts 2026 oil demand growth of 1.43m barrels a day

The 2026 forecast aligns with OPEC’s long-term view that global oil consumption will continue to rise over the next two decades. Reuters
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Updated 15 January 2025
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OPEC forecasts 2026 oil demand growth of 1.43m barrels a day

LONDON: OPEC on Wednesday predicted that global oil demand in 2026 will increase at a rate similar to this year’s growth.

However, the organization lowered its 2024 demand projection for the sixth time, citing ongoing economic weakness in China, the world’s largest oil importer.

The 2026 forecast aligns with OPEC’s long-term view that global oil consumption will continue to rise over the next two decades. This contrasts with the International Energy Agency, which expects oil demand to peak within this decade as the world transitions to cleaner energy sources.

In its latest monthly report, OPEC projected that oil demand will increase by 1.43 million barrels per day in 2026, a growth rate nearly identical to the 1.45 million bpd expected for this year. The 2026 forecast marks the first time OPEC has provided a projection for that year in its monthly update.

OPEC noted that transportation fuels will be the primary driver of oil demand growth in 2026, with air travel expected to continue expanding. Both international and domestic flights are expected to see steady increases, according to the report.

The report also revised its 2024 demand growth forecast down to 1.5 million bpd, compared to the 1.61 million bpd forecast in the previous month. This marks the sixth consecutive reduction for 2024, following an initial forecast of 2.25 million bpd in July 2024.

OPEC’s demand outlook remains at the higher end of industry expectations.

Earlier on Wednesday, the IEA forecasted a slower pace of global oil demand growth in 2025, predicting an increase of 1.05 million bpd.


Oman’s logistics industry growth fueled by $8.8bn investment, official figures show

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Oman’s logistics industry growth fueled by $8.8bn investment, official figures show

RIYADH: An investment of 3.4 billion Omani rials ($8.8 billion) by the end of 2025 underscored Oman’s accelerating transformation in transport, logistics, and the digital economy.

According to the Ministry of Transport, Communications and Information Technology Achievement Bulletin, total investment in the transport and logistics sector amounted to 2.3 billion rials from 2021 through the end of 2024, increasing to 3.4 billion rials by the close of 2025.

The level of capital spending achieved signals a clear shift from planning to implementation, as infrastructure, services, and digital systems are now actively transforming the movement of goods, data, and people throughout the Sultanate of Oman.

This funding aligns with Oman’s goal of establishing itself as a key logistics hub connecting regional and international trade corridors.

The investments have been allocated to ports, logistics hubs, land transport systems, and digital platforms that enhance the sector’s efficiency and integration.

A prominent outcome of this investment is the progress in digital transformation. By the close of 2024, 1,700 out of 2,523 key government services had been fully digitized.

By the end of 2025, the number of digitized services rose to 2,277, signaling the near completion of public service digitalization.

For businesses, especially in trade, transport, and logistics, this transition has led to faster processing, greater transparency, and reduced administrative costs, contributing to a more efficient and supportive business climate.

Advancements in workforce localization highlight deeper structural shifts, particularly in tech-driven sectors.

Omanization in the IT sector grew from 38 percent in 2024 to 45.5 percent in 2025, indicating greater integration of Omani talent into high-value digital roles.

In transport and logistics, Omanization rose from 20 percent to 21.6 percent, showing steady progress in developing national expertise in roles historically filled by expatriates.

Trade and operational metrics highlight the sector’s expanding capabilities. Container and cargo traffic rose from 4.3 million twenty-foot equivalent units in 2024 to over 5 million TEUs in 2025, signaling enhanced port performance, efficiency, and deeper regional supply chain integration.

General cargo volumes also grew significantly, increasing from 115.7 million tonnes to 143 million tonnes over the same period, reflecting the continued growth of Oman’s logistics sector.

The bulletin highlights significant progress in digital governance, with the National Digital Transformation Program’s performance rate increasing from 73 percent in 2024 to 94 percent in 2025. This improvement reflects enhanced execution, improved coordination among government agencies, and more effective oversight of complex digital projects.

Financial results across key subsectors further confirm tangible progress. The ports sector saw a 12.9 percent rise in revenue, driven by higher volumes and improved operational efficiency.

Maritime affairs experienced a 6.5 percent jump, while land transport led the growth with an 18 percent increase, reflecting strong demand for freight and mobility services.

Regarding project delivery, although the target for project implementation was set at 70 percent, actual performance reached 85 percent in 2025.

This surpassing of expectations reflects stronger planning, enhanced execution capabilities, and greater accountability in major transport and digital initiatives.

In December, Fitch Ratings upgraded Oman to investment-grade status, raising its long-term foreign-currency rating from BB+ to BBB-, citing the Sultanate’s stronger public finances, improved external position, and continued commitment to prudent fiscal management.

The agency noted at the time that Oman has successfully strengthened fiscal discipline, reducing government debt significantly to around 36 percent of gross domestic product in 2025, down from about 68 percent in 2020.