12:50 PM EDT, 08/12/2025 (MT Newswires) -- The Organization of the Petroleum Exporting Countries on Tuesday lifted its global oil demand projection for 2026 and raised its world and US economic growth forecasts for this year.

The cartel now expects oil consumption to rise by 1.38 million barrels a day next year, up from its previous estimate of 1.28 million barrels. The OPEC attributed the improved outlook to better-than-expected economic performance for Organization for Economic Co-operation and Development members in the Americas and Europe, as well as the Middle East and Africa. It continues to estimate oil demand to increase by 1.29 million barrels a day in 2025.

West Texas Intermediate crude oil was down 1.4% at $63.09 a barrel in Tuesday afternoon trade, while Brent lost 1% to $66.01.

The OPEC now expects world economic growth to be at 3% for 2025, up from its previous expectations of 2.9%, while reiterating its 3.1% growth forecast for next year. Expansion projections for the US were lifted to 1.8% from 1.7% for this year, with 2026 growth expectations held steady at 2.1%.

"Economic data at the start of (the second half of 2025) further confirm the resilience of global growth, despite persistent uncertainties related to US-centered trade tensions and broader geopolitical risks," the OPEC said. "While the US and the Eurozone maintained their recovery trend in (the first half of 2025), India, China, and Brazil have outperformed expectations so far," the OPEC said.

The cartel expects the global economy to continue to expand at a "relatively solid level" through the 2025 second half and into next year, with trade tensions easing slightly as several countries struck trade deals with the US before President Donald Trump's Aug. 1 deadline. However, several major economies, including India, Brazil and Canada have yet to finalize agreements with the US, the OPEC added.

Trump's sweeping new tariffs on imports from several trading partners went into effect last week. On Monday, Trump extended his tariff pause on China for another 90 days.

The OPEC now projects liquid supply from countries not participating in the Declaration of Cooperation, or DoC, to grow by 630,000 barrels a day next year, down from its prior guidance of 730,000 barrels. It continues to expect liquid supply to rise by 810,000 barrels a day in 2025. The DoC is the name for OPEC+, which comprises OPEC and non-OPEC allies.

The cartel still expects the Federal Reserve to lower its benchmark lending rate twice this year amid the continued strength in the US labor market, though a reduction next month seem "less likely," it said in the report.

Recently, eight members of the OPEC+ agreed to increase oil production by 547,000 barrels a day next month.