The world is now in the first global energy crisis, the head of the International Energy Agency (IEA) said on Tuesday.
IEA Executive Director Fatih Birol said increased imports of liquefied natural gas (LNG) to Europe and the potential recovery of Chinese demand will put pressure on the market.
In fact, OPEC+'s recent decision to cut production by 2 million barrels per day also creates risks because it is feared that it will not be able to meet the increased demand.
He said, the action is very risky because several economies around the world are now on the brink of recession.
However, Birol also said the current energy crisis could be a turning point in energy history to accelerate alternative energy sources and form a sustainable and secure system.
In addition, he also emphasized that the world still needs Russian oil to meet market demand.
Some Western countries are now trying to put a price cap on Russian oil to limit its oil revenues in response to the invasion of Ukraine.
At the time of writing, Brent oil futures traded flat at $91 a barrel, while US WTI traded flat at $84 a barrel.
