WTI Crude Holds at $62.50 as OECD Slashes Global GDP Forecasts

WTI Crude Oil Stalls at $62.50 as OECD Cuts Global GDP Forecast

West Texas Intermediate (WTI) crude oil is holding steady around $62.50 in the early European session on Tuesday after recording gains of more than 3.5% earlier this week. However, bearish sentiment is resurfacing as the Organization for Economic Co-operation and Development (OECD) cut its global economic growth forecast, which may weigh on future oil demand.

OECD Slashes Global Economic Outlook

The OECD now projects global GDP to grow 2.9% in 2025, down from 3.1% in its earlier estimate. For 2026, growth expectations have been trimmed slightly from 3.0% to 2.9%. The downgrade also applies to the United States, the world’s largest oil consumer, which is expected to grow by only 1.6% in 2025 (previously 2.2%) and 1.5% in 2026.

“Lower economic expectations typically signal weaker industrial demand for oil,” analysts note, “and that poses downside risk for crude prices.”

Stronger USD Weighs on Oil Prices

Adding to the pressure is the rebound in the US Dollar. The US Dollar Index (DXY) has recovered from a six-week low of 98.58 and now trades around 98.90, making dollar-priced oil more expensive for non-USD buyers.

This strengthens the bearish case for crude, especially as traders also remain cautious about geopolitical developments and US-China trade tensions.

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