Soaring energy prices are likely to crimp demand for oil in some of the world’s fastest-growing economies this year, the Organization of the Petroleum Exporting Countries said Thursday.

In a closely watched monthly market report, OPEC said global demand for oil would grow by 5.7 million barrels a day this year, 160,000 barrels a day less than it expected last month. The revision means the oil-producers group now expects demand for oil in 2021 to total 96.4 million barrels a day.

Soaring...

Soaring energy prices are likely to crimp demand for oil in some of the world’s fastest-growing economies this year, the Organization of the Petroleum Exporting Countries said Thursday.

In a closely watched monthly market report, OPEC said global demand for oil would grow by 5.7 million barrels a day this year, 160,000 barrels a day less than it expected last month. The revision means the oil-producers group now expects demand for oil in 2021 to total 96.4 million barrels a day.

Soaring fuel costs amid a global energy crunch were showing signs of weighing on demand. Weaker than expected demand for oil in China and India was now likely, OPEC said. In China, fresh outbreaks of Covid-19 cases and lockdowns, coupled with weaker factory activity and power outages have also reduced demand for fuels.

Demand for the remainder of the year, particularly in the poorer nations that aren’t members of the Organization for Economic Cooperation and Development, is also likely to be slower because of higher energy costs, OPEC said.

Prices for a range of energy commodities have surged in recent months. As economies have reopened following coronavirus pandemic closures, demand for everything from gasoline to coal has rebounded rapidly. Supplies, which were often curtailed during the worst of the pandemic have failed to keep pace, sending prices higher.

In Europe, low stockpiles of natural gas and limited supplies ahead of the winter months have sent the continent’s natural gas prices surging to record levels. That has led some industries facing high energy bills to cut back on output.

High coal and gas prices have led to power cuts in China, while Beijing has encouraged factories to reduce output to ease the strain on its power grid.

Still, the oil producers’ group expects demand next year to be above pre-pandemic levels. The organization left its forecast for demand growth next year steady at 4.2 million barrels a day. Oil demand is expected to amount to 100.6 million barrels a day next year, half a million more than in 2019.

Related Video

In 2012, the Netherlands experienced a 3.6 magnitude earthquake. It was caused by one of the world’s largest gas fields, known as Groningen, and it set off a chain of events that’s contributing to today’s sky-high energy prices. WSJ’s Shelby Holliday explains. Illustration: Sebastian Vega The Wall Street Journal Interactive Edition

Weaker demand for oil could ease pressure on the cartel, which has come under fire because of its constrained output. U.S President Joe Biden has rebuked the group for not doing more to help alleviate the global energy crunch.

OPEC last month stuck to plans to increase oil output in measured increments, despite pressure to raise production at a faster clip.

Meanwhile, OPEC said Thursday supply from oil producers that aren’t part of its cartel should grow by 700,000 barrels a day this year, and by 3 million barrels a day next year.

Despite the negative effect of higher energy costs, the cartel doesn’t expect weaker global economic growth. It left its forecast for economic growth this year and next unchanged at 5.6% and 4.2%, respectively.

Write to Will Horner at William.Horner@wsj.com