The unprecedented global energy crisis that threatens the global economy is expected to worsen in the coming months, the head of the International Energy Agency (IEA) said Tuesday during the Global Energy Forum in Sydney, Australia. “The world has never witnessed such an energy crisis in terms of depth and complexity,” warned Fatih Birol. “We may not have seen the worst yet – it affects the whole world.”
Rising energy prices have shaken economies around the world after Russia’s invasion of Ukraine prompted a series of Western sanctions on oil and gas supplies to the country, leading to severe supply cuts.
In the US, rising energy prices contributed to high levels of inflation affecting every corner of the economy. Meanwhile, Russia is making big profits from selling oil and gas to Asia as countries like India and China have doubled their supplies of cheap Russian energy.
With only a few months left before the European winter, Birol assured that the region will face serious problems, as Russia has further shocked energy markets in recent days after cutting off natural gas supplies to Europe for maintenance of the Nord Stream 1 gas pipeline.
“This winter in Europe is going to be very, very difficult,” Birol said. “This is a serious problem, and it could have serious consequences for the global economy.”