Global oil demand is expected to decline by about 1 million barrels per day in 2026, according to a report from the International Energy Agency. However, in the US, gasoline use increased in the second quarter of the year, despite pump prices being about 50% above their pre-war levels in May.
Global Oil Demand Decline
The decline in global oil demand is due to higher oil prices and disruptions to physical supply, particularly in Asia, which relies heavily on oil from the Middle East. China’s decrease of 1.5 million barrels per day, representing a 9% decline, was the largest globally.
The supply disruptions were caused by the war between the US and Iran, which left ships loaded with crude oil stranded in the Persian Gulf. The war has made the future of the Strait of Hormuz, a major route for oil and gas shipments, uncertain.
US Gasoline Use Increase
Despite the increase in gasoline prices, US drivers have not been deterred from buying gas. One reason for this may be that the percentage of household income spent on gasoline in the US has been declining for years. Additionally, many people have been transitioning from remote work to in-office jobs, which may have contributed to the increase in gasoline consumption.
Original reporting: KTBS 3 (Shreveport) — read the source article.
