IEA expects world oil demand to fall amid surging gas prices

Demand for crude oil worldwide is expected to fall as higher gas prices amid the Iran war force many consumers and businesses to reduce their consumption, according to the International Energy Agency (IEA). “Our forecast for global oil demand in the second half of 2026 is reduced by roughly 550 kb/d [thousand barrels per day] versus last month’s Report, as the continued closure of the Strait of Hormuz disrupts international supply chains and curtails product availability,” says the IEA in its latest oil market report, released Wednesday.“Elevated fuel prices are putting further downward pressure on oil use.”The price of crude oil is set worldwide based mostly on expectations for demand and supply. The price consumers pay for gas and diesel at pumps typically reflects changes in global oil prices. Story continues below advertisement If demand for oil and gas falls, prices often fall as a result.Since the Iran war began, Canadians have paid higher gasoline prices at retail compared to before the war began because global oil supplies have been strained. Related Videos 1:54 Trump says Iran should pay compensation for people killed in previous conflicts About a fifth of the world’s oil ...