Oil price forecasts have been sharply downgraded as mounting concerns over an impending global economic slowdown grip markets. Analysts are warning that weakening demand could send crude prices even lower in the coming months.

The price slide has also been accelerated by an announcement from OPEC+ producers to begin unwinding their voluntary production cuts. The move signals a shift in strategy, aimed at regaining market share but also adding to downward pressure on oil prices.

Global benchmark Brent crude recently fell below key support levels, raising alarm among investors. Meanwhile, West Texas Intermediate (WTI) prices in the U.S. have also seen notable declines.

Analysts say signs of slowing economic activity in major economies like China, Europe, and the United States are creating a cautious environment for energy markets. Demand projections for the second half of 2025 have been scaled back significantly.

“The fear of a synchronized global slowdown is becoming real, and oil markets are reacting accordingly,” said a senior commodities strategist.

OPEC+ had maintained voluntary production cuts for much of the past year to stabilize prices. However, in a surprising move, the group recently announced a phased plan to restore output.

The decision reflects internal pressures among member nations to boost revenues despite the risk of oversupply. Several producers are also facing growing domestic needs and fiscal challenges.

The International Energy Agency (IEA) has also revised its global demand outlook downward, citing weaker-than-expected industrial activity and a sluggish recovery in transportation fuels.

Financial markets, already on edge from inflation worries and tight monetary policies, have reacted negatively to the oil news, with energy stocks experiencing a sell-off.

Despite the bearish sentiment, some analysts believe that geopolitical risks and potential supply disruptions could limit the extent of price declines.

Still, with recession risks rising and major oil producers stepping up output, the overall sentiment remains bearish heading into the summer.

Traders are now watching closely for further economic data releases and any additional moves by OPEC+ that could influence the supply-demand balance.

For now, motorists and industries dependent on oil are likely to benefit from lower prices, but the broader implications for the global economy remain concerning.