According to the president of the International Energy Agency (IEA), the world is currently experiencing “the first truly global energy crisis” as a result of tightening markets for liquefied natural gas (LNG) and major oil producers reducing supplies.
According to IEA Executive Director Fatih Birol, just 20 billion cubic metres of new LNG capacity will enter the market in 2019, which will result in tighter market conditions due to rising LNG imports to Europe amid the Ukraine conflict and a potential resurgence in Chinese demand for the fuel.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, recently decided to reduce 2 million barrels per day (bpd) of output, which Birol described as a ‘risky’ choice given that the IEA anticipates a rise in global oil demand of over 2 million bpd this year.
‘If we’re talking about the global recession, it’s particularly perilous because several economies worldwide are on the verge of one.’
‘This choice, in my opinion, was truly regrettable,’ he said.
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