High fuel prices dampening demand more than expected but oil market is 'walking a tightrope,' IEA says | Businessinsider

High fuel costs are dampening oil demand in developed countries, the IEA said on Wednesday."As an EU embargo on Russian oil is set to come into full force at the end of the year, the oil market may tighten once again."High gas prices are pushing down demand in developed countries more than expected while the oil market remains in flux, the International Energy Agency said on Wednesday.

The watchdog group added that uncertainty over Russia's invasion of Ukraine and a worsening global economic picture are both pushing down any growth in oil demand while inflation adds price pressures for consumers. As a result, oil markets are"walking a tightrope," it said. The IEA's latest report comes after OPEC on Tuesday cautioned demand would considerably exceed supply next year unless member countries ramp up production sharply.

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