An energy industry expert said oil prices must rise significantly before global demand declines enough to keep worldwide supplies strong.
This perspective highlights a critical tension between consumer costs and energy security. If demand remains too high while supply routes are compromised, the global economy faces the risk of severe shortages and prolonged instability.
The expert, appearing on CTV News, said higher prices are necessary to curb consumption and preserve the remaining global oil supply. This argument comes as geopolitical disruptions continue to threaten key maritime corridors. The Strait of Hormuz, which normally carries about 20% [1] of global oil and gas, has been a focal point of these tensions.
Reports on the status of the waterway vary. Some sources indicate the Strait remains effectively closed to shipping traffic, while others state a two-week cease-fire with Iran is pending to reopen the lane [2, 3].
Market volatility has already impacted consumers. As of April 7, 2026, gasoline prices had risen 40% [4] from six weeks prior. During that same period, diesel prices increased by nearly 50% [5]. These spikes reflect the immediate pressure placed on the supply chain by regional conflicts.
Despite these increases, some price corrections have occurred. Brent crude oil fell below $100 per barrel [6] following a cease-fire announcement. However, the industry expert said such dips may not be sufficient to trigger the demand destruction needed to stabilize long-term reserves.
Maintaining a high price floor would theoretically force industries and consumers to find alternatives, or reduce usage. This shift is viewed by some analysts as the only way to ensure that available oil is distributed efficiently during a period of systemic instability.
“Oil prices must rise significantly before global demand declines.”
The argument for higher oil prices represents a 'demand destruction' strategy. By making oil prohibitively expensive, the market forces a reduction in consumption that compensates for lost supply from conflict zones. While this protects the physical availability of oil, it risks triggering broader economic inflation as transportation and manufacturing costs rise globally.
