{
  "id": 774512,
  "title": "IEA expects world oil demand to fall amid surging gas prices",
  "url": "https://urgent.news/2026/08/13/iea-expects-world-oil-demand-to-fall-amid-surging-gas-prices",
  "topic": "world",
  "section": "World",
  "published": "2026-08-13T14:25:02.000Z",
  "source": {
    "name": "Global News",
    "slug": "global-news",
    "url": "https://globalnews.ca/news/12018757/oil-prices-demand-iea/"
  },
  "original_language": "en",
  "account": "The International Energy Agency (IEA) anticipates a decline in global oil demand due to rising gas prices stemming from the ongoing Iran war. This downward pressure on oil consumption is attributed to heightened fuel costs, which are expected to force many consumers and businesses to cut back on their usage. Given that the price of oil is largely influenced by expectations regarding demand and supply, a dip in oil and gas demand often results in lower prices.\n\nEver since the start of the Iran war, Canadians have been confronted with increased gasoline prices compared to the period before the conflict began. Approximately one-fifth of the world's oil supply has been unable to reach markets due to continuous restrictions in the narrow Strait of Hormuz, a shipping channel susceptible to potential Iranian attacks. Tensions between the U.S. and Iran have escalated since the conflict began. Initially, a tentative peace deal that halted most of the fighting in June quickly disintegrated. Iran has now vowed to deny any ships passage through the strait unless the U.S. agrees to its demands, including compensation for alleged war damages.\n\nU.S. crude oil prices, known as West Texas Intermediate, are currently around US$81, a decrease from $83.50 on Wednesday and an increase from $75 a week prior. Consumer gas price adjustments typically manifest within days after fluctuations in crude oil prices. The Canadian Automobile Association (CAA) reports that the national average price for regular-grade gasoline in Canada stands at about $1.68 per litre as of Thursday, up from $1.53 a week ago and nearly 35 cents higher than a year ago. The federal government has imposed a temporary pause on the fuel excise tax since April, offering some temporary relief to consumers; however, this relief might not last as the plan is set to expire next month.\n\nExtended periods of high gas prices could lead consumers to feel financially strained, potentially causing a perceived reduction in demand. If demand does decrease, prices are likely to follow suit, provided there is sufficient supply to meet the reduced demand. The IEA notes that global oil supply expanded by 2.4 million barrels per day (mb/d) to 101.5 mb/d in July; however, it remains 6.3 mb/d below the levels observed a year ago, with 8.3 mb/d of Gulf output still suspended. Despite brief respite in June, global observed oil inventories dropped by 69 mb, or 2.2 mb/d, in July, largely due to a significant decline in oil on water. Moreover, the strategic U.S. stockpile of crude oil has fallen to its lowest level in over 40 years.\n\nThe IEA suggests that while global demand will decline for most of the second half of the year, it is projected to rise by 2.4 mb/d in 2027.",
  "summary": "Demand for crude oil worldwide is expected to fall as higher gas prices force many consumers and businesses to reduce their consumption, according to the IEA.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}