Expensive gas can permanently kill demand for oil
Finance
Surging fuel costs can trigger a permanent shift in consumer habits, causing oil demand to vanish faster than refineries can adjust their production.
When petrol prices in Europe climbed toward ninety dollars per barrel, the market witnessed a phenomenon called demand destruction. This occurs when a commodity becomes so expensive that consumers do not just cut back—they switch to alternatives permanently. In early 2026, this triggered a nearly thirty percent surge in electric vehicle sales across the continent.