The unprecedented global energy crisis threatening the global economy is expected to worsen in the coming months, the head of the International Energy Agency (IEA) noted this Tuesday during a global energy forum in Sydney, Australia. Fatih Birol warned that “the world has not witnessed such an energy crisis in terms of depth and complexity.” “We may not have seen the worst yet – this affects the entire world.”
Rising energy prices rocked economies around the world after Russia’s invasion of Ukraine triggered a series of Western sanctions on the country’s oil and gas supplies, leading to severe supply restrictions.
In the United States, rising energy costs have contributed to high levels of inflation that have hit every corner of the economy. Meanwhile, Russia is making big profits from oil and gas sales to Asia, as countries like India and China have doubled their supplies of cheap Russian energy.
With the European winter approaching a few months away, Birol stressed that the region will face significant challenges, as Russia has boosted energy markets in recent days after cutting off natural gas supplies to Europe for pipeline maintenance.
“This winter in Europe is going to be very, very difficult,” Birol said. “This is a major concern and could have serious repercussions for the global economy.”
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