OPEC Keeps Oil Demand View Unchanged as It Continues to Boost Output

By Giulia Petroni

The Organization of the Petroleum Exporting Countries left its oil-demand forecasts unchanged after agreeing to raise production again next month, doubling down on its strategy shift in a push for market share.

The Vienna-based cartel expects global oil demand to grow by 1.29 million barrels a day this year and 1.38 million barrels a day the next, supported by robust economic activity across key regions.

Global economic growth estimates were also maintained at 3% and 3.1% for the respective periods. OPEC said consumer spending in major economies remained resilient and, along with fiscal stimulus measures, is expected to continue supporting growth.

Meanwhile, trade deals between the U.S. and some of its major trade partners have eased broader uncertainties, according to the group.

Brent crude traded just below $67 a barrel on Thursday, while West Texas Intermediate hovered around $63 a barrel amid softening U.S. demand and persistent concerns over a looming global supply surplus. Losses are capped, however, by heightened geopolitical tensions following Israel's attack on Hamas's leadership in Qatar and prospects of tighter Western sanctions on Russian energy exports.

In August, overall OPEC crude-oil production rose by 478,000 barrels a day to 27.95 million barrels a day, while the total production of OPEC+ members increased by 509,000 barrels a day to 42.4 million barrels a day. Output from Kazakhstan--which has repeatedly created tensions within the group--fell by 23,000 barrels a day to 1.81 million, but remained above the country's quota of around 1.5 million.

Last week, OPEC+ members agreed to further raise output in October, beginning to roll back another tranche of voluntary output curbs they had previously put in place. The group had already agreed to fully reverse a 2.2 million-barrel cutback it made in 2023 with a series of increases from April to September.

Eight key members of the OPEC+ alliance are now scheduled to meet on Oct. 5 to discuss November production levels.

OPEC+'s aim is to defend market share against U.S. shale producers, according to some market watchers. However, softer oil prices pose a challenge for producers' fiscal budgets, making the group's balancing act more difficult.

Meanwhile, supply from producers outside of the wider OPEC+ alliance is expected to rise by 810,000 barrels a day this year and 630,000 barrels a day the next-unchanged from previous projections-driven by the U.S., Canada, Brazil and Argentina, the cartel said in its latest report.

Write to Giulia Petroni at giulia.petroni@wsj.com