The world is in an energy crisis due to problems in LNG markets and reduced oil supplies.
The head of the International Energy Agency (IEA), Fatih Birol, said the world is at the center of “the first real global energy crisis,” Reuters wrote on Tuesday, October 25.
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Commenting on OPEC+’s decision to cut production by 2 million barrels per day, he called it “dangerous” as the IEA believes demand growth this year will be around 2 million barrels per day.
“It is especially dangerous because some economies around the world are on the brink of recession if we are talking about a global recession… I think this decision is really bad,” he said .
Birol cited rising global prices of several energy sources, including oil, gas and coal, which are hitting consumers as they deal with rising food and service prices. High prices and the possibility of rationing are potentially dangerous for European consumers preparing for winter, he said.
Birol said Europe could survive this winter if the weather stays mild.
“If we do not have a very cold and long winter, if there are no surprises in terms of what we have seen, for example, the explosion of the Nord Stream gas pipeline, Europe should go through this winter with some economic difficulties and social. ,” he added.
According to the IEA, oil consumption is expected to increase by 1.7 million barrels per day by 2023, so the world will still need Russian oil.
Birol recalled that the G7 countries have prepared a mechanism that allows developing countries to buy Russian oil at a lower price, but there are still many details that need to be ironed out.
Meanwhile, in Europe, gas prices fell below $1,000 per 1,000 cubic meters for the first time since June 14.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.