Record fuel prices are hitting oil demand in developed countries harder than anticipated, the International Energy Agency warned on Wednesday, in the latest sign of inflationary pressures forcing consumers to cut back.
Paris-based IEA, which is primarily funded by OECD members, said that growth in oil demand was slowing as the global economy falters, but cautioned that the oil market was “walking a tightrope” of uncertainty given threats to supply in Russia.
“Soaring fuel costs and a deteriorating economic environment are slowly starting to moderate oil demand growth in the OECD,” the IEA said. “Oil demand in the OECD contracted in April, with the Americas, Europe and Asia all posting larger than normal seasonal declines. Road fuels were impacted the most, suggesting that record prices have begun to afflict demand.”