Oil Demand Resilience Shines in OPEC's Latest Market View

OPEC’s latest Monthly Oil Market Report offered a steady and confident tone, keeping its global demand growth forecasts unchanged for both 2025 and 2026. The cartel continues to expect demand to rise by 1.3 million barrels per day (bpd) this year and 1.4 million bpd next year, supported by firm economic activity across major economies. It also maintained its global growth outlook at 3% for 2025 and 3.1% for 2026, citing stronger data from the United States, China, India and Japan.

Despite recent price softness, the organization emphasized that oil market fundamentals remain robust. September’s average output rose by 630,000 bpd to 43.05 million bpd, driven largely by Saudi Arabia and Russia as OPEC+ continues to unwind the earlier cuts. Non-OPEC production is also expected to grow by 800,000 bpd in 2025 and 600,000 bpd in 2026, with Brazil, Canada, and the United States leading the gains.

At this time, investors interested in the sector could benefit from focusing on resilient stocks like APA Corporation APA, Civitas Resources CIVI and Devon Energy DVN.

Steady Demand Outlook and Tighter Balances

OPEC projects global oil demand to average 105.1 million bpd in 2025 and 106.5 million bpd in 2026, reaffirming its confidence in transport and industrial fuels. Gasoline and jet fuel are expected to lead growth with year-over-year increases of 430,000 bpd and 360,000 bpd, respectively, while petrochemical feedstock and diesel contribute nearly 600,000 bpd combined. The group anticipates only a modest 50,000 bpd deficit by 2026 if current production levels hold — a sharp revision from last month’s forecast of a 700,000 bpd shortfall.

However, OPEC believes global energy transition efforts will advance more slowly than many forecasters anticipate. Steady industrial expansion, recovering air travel, and growing energy needs in emerging markets — particularly across Asia — are expected to sustain consumption growth through the medium term.

Investment Implications

For investors, OPEC’s steady projections suggest a cautiously constructive setup for the energy sector. These Zacks Rank #3 (Hold) companies with strong fundamentals and disciplined production strategies — such as APA Corporation, Civitas Resources and Devon Energy — remain well-positioned to benefit from tightening balances and resilient demand.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

APA Corporation: Founded in 1954, Houston, TX-based APA Corporation is one of the world's leading independent energy companies engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. APA’s Suriname portfolio in South America is particularly exciting, where it continues to achieve significant drilling success. In the United States, the upstream player mainly operates in the prolific Permian Basin.

Civitas Resources: Based in Denver, Civitas Resources focuses on the DJ Basin in Colorado and the Permian Basin across Texas and New Mexico. With strong well returns and a valuable midstream component, Civitas is positioned for growth. The company has become a leading consolidator in the DJ Basin and offers substantial returns to its shareholders, with a balanced production mix of oil, NGLs and natural gas.

Devon Energy: Devon Energy is an independent energy company whose oil and gas operations are mainly concentrated in the onshore areas of North America, primarily in the United States. The company’s assets are spread across the Delaware Basin, Eagle Ford, Anadarko Basin and Powder River Basin. The assets DVN owns have significant long-term growth potential. The company continues to expand its holdings through strategic acquisitions.

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