The International Energy Agency (IEA) chief stated on Tuesday that the world is in the midst of “the first truly global energy crisis,” citing tightened markets for liquefied natural gas (LNG) and major oil producers curtailing supply.
With only 20 billion cubic meters of new LNG capacity coming to market in next year, IEA Executive Director Fatih Birol warned at the Singapore International Energy Week that rising imports of LNG to Europe in the midst of the Ukraine crisis, as well as a potential rebound in Chinese appetite for the fuel, would tighten the market.
Meanwhile, the recent decision by the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to reduce 2 million barrels per day of output is a “risky” decision, given the IEA anticipates global oil demand growth of close to 2 million bpd this year.
“(It is) especially risky as several economies around the world are on the brink of a recession, if we are talking about the global recession…I found this decision really unfortunate,” he said.
