While Global Oil Demand Drops, US Drivers Keep Buying More Gas
Despite a global decline in oil demand and geopolitical tensions, US gasoline consumption rose in the second quarter of 2026. Experts attribute this to a return to in-office work and the fact that higher-income households are less sensitive to rising fuel prices.
Why it matters
This trend highlights the resilience of US consumer behavior in the face of energy price volatility and shifting global supply chains.
While global oil demand is set to decline this year due to the US-Iran conflict, gasoline consumption in the United States increased in the second quarter of 2026.
Gasoline prices surpassed $4.50 on average for a gallon of regular in the US in May, rising more than 50% since the start of the war, according to AAA data.
But that didn’t stop drivers from hitting the road; in fact, gasoline consumption rose in the US during the second quarter of the year, according to AP.
One reason may be because the percentage of household income spent on gasoline in the US has been declining for years, said Daniel Sternoff, senior fellow at the Center on Global Energy Policy at Columbia University. Plus, many people have been transitioning from remote work to in-office jobs, he added.
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