WORSE IS COMING FOR ENERGY - THE BIGGEST ENERGY CRISIS IN HISTORY, THE IEA WARNS - Filenews 14/4
The current month "is expected to be even worse than March" for the energy sector, even if the war in Iran ends soon, the executive director of the International Energy Agency (IEA), Fatih Birol, warned on Monday.
While tankers delivered the quantities they were carrying in March as they had been "loaded before the start of the crisis (...) nothing could be loaded" on oil tankers this month, Mr. Birol explained during a press conference.
He expressed himself after a meeting with the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva and the President of the World Bank (WB) Ajay Baga, with the aim of coordinating the reaction of the three institutions to the consequences of the war in the Middle East on the global economy.
"This is the biggest energy crisis in history. It concerns oil and natural gas, but also other essential products, such as fertilizers, petrochemicals, or even helium," the IOC chief explained.
In the face of this situation, the three international organizations are joining their "capabilities" in terms of "assessing" not only the developments of the crisis but "also how countries are reacting", Kristalina Georgieva noted.
In this regard, the IMF and the World Bank reminded that they can disburse at least 20 billion dollars (each institution) to help countries facing the greatest difficulties.
"If the crisis continues, we will change the orientation of other programs, which will allow us to have a total amount of 50 to 60 billion dollars available in the next six months," Ajay Baga assured, referring to the possibilities of the WTO.
The crisis could be prolonged even after the war ends due to "damage to infrastructure" in the oil and gas sectors in the Gulf states, Ms. Georgieva warned.
According to the IOC, more than a third of the energy infrastructure in the Gulf countries has been severely damaged during the war that broke out on February 28 with the US and Israeli attack on Iran, which reacted by de facto closing the Strait of Hormuz.
Fatih Birol wanted to appear positive, reminding that more than 80% of the world's strategic reserves remain available.
He called on countries to "not impose restrictions on their exports", to act as "responsible members of the international community".
RES – EIA
