Escalating Energy Crisis Threatening Global Economy – EIA

The International Energy Agency (IEA), on Tuesday, warned that tightening markets for liquefied natural gas (LNG) worldwide and major oil producers cutting supply have put the world in the middle of ‘the first truly global energy crisis.’

IEA executive director, Fatih Birol, during the Singapore International Energy Week, said, rising imports of LNG to Europe amid the Ukraine crisis and a potential rebound in Chinese appetite for the fuel will tighten the market as only 20 billion cubic meters of new LNG capacity will come to market next year.

At the same time, the recent decision by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to cut 2 million barrels per day (bpd) of output is a ‘risky’ decision as the IEA sees global oil demand growth of close to 2 million bpd this year, Birol said.

“It is especially risky as several economies around the world are on the brink of a recession, if that we are talking about the global recession. I found this decision really unfortunate,” he said.