Why is global oil demand dropping in 2026, and why is the U.S. an exception?

Global oil demand is dropping in 2026—by about 1 million barrels per day—due to higher oil prices and physical supply disruptions caused by the war between the U.S. and Iran, which stranded crude-laden ships in the Persian Gulf for over three months and severely constrained transit through the Strait of Hormuz; much of the decline (5.3 million barrels per day globally in May) occurred in Asia, especially China, which cut oil imports by 1.5 million barrels per day (9%) and halted strategic petroleum reserve fill-ups, while the U.S. bucked the trend with rising gasoline use in Q2 2026 despite pump prices being 50% above prewar levels.

What role did China’s strategic petroleum reserve and electric vehicle adoption play in reducing its oil demand?

China reduced its oil consumption by temporarily stopping fills of its strategic petroleum reserve—which had been receiving nearly 1 million barrels per day—and accelerated fuel savings in road transportation as electric vehicle adoption grew; experts estimate this contributed to 500,000–600,000 barrels per day in lost gasoline and diesel demand.

Global Oil Demand Is Dropping, but U.S. Drivers Keep Buying More Gas

Jul 11, 2026

According to an IEA report, global oil demand is set to decline by 1 million barrels per day in 2026 due to higher prices and supply disruptions, while U.S. gasoline consumption increased despite pump prices being 50% above prewar levels.

apnews

2026-01-21

Oil demand set to rise in 2026, supply and stocks continue to climb – IEA

2026-01-22

IEA Raises 2026 Global Oil Demand Growth Forecast

2026-03-12

Largest-Ever Oil Reserve Release Fails to Fill Gap, International Oil Prices Continue to Rise

2026-03-17

IEA: "If Necessary" Will Further Release Oil Reserves

2026-03-24

IEA Member Countries to Release Over 400 Million Barrels of Oil Reserves