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PARIS, France (AFP) – The Worldwide Vitality Company lower its world oil demand forecast for 2022 on Wednesday, warning that sanctions in opposition to Russia over its invasion of Ukraine may spark a worldwide provide “shock”.
“Confronted with what may flip into the largest provide disaster in many years, world vitality markets are at a crossroads,” the IEA mentioned in a month-to-month report.
“Whereas it’s nonetheless too early to know the way occasions will unfold, the disaster might lead to lasting adjustments to vitality markets,” mentioned the Paris-based company, which advises developed international locations.
Russia, the world’s greatest exporter of oil, has been hit with a slew of worldwide sanctions over the warfare in Ukraine, which despatched oil costs hovering.
Whereas the measures exclude the vitality market, the IEA mentioned main oil firms, buying and selling homes, transport corporations and banks have “backed away from doing enterprise with the nation”.
The US and Britain have introduced their very own bans on Russian oil imports.
“The implications of a possible lack of Russian oil exports to world markets can’t be understated,” the IEA mentioned.
“The prospect of large-scale disruptions in Russian manufacturing on account of wide-ranging sanctions in addition to choices by firms to shun exports after Moscow’s invasion of Ukraine is threatening to create a worldwide oil provide shock,” it mentioned.
The company lowered its forecast for progress in oil demand by almost a million barrels per day.
It now expects world oil demand to succeed in 99.7 million barrels per day this 12 months.
© Agence France-Presse
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