(IEA) The International Energy Agency is predicting shocks in global oil markets, warning that growing sanctions against Russia could see its output fall by a quarter next month.
The indicated plunge means that the world will be deprived of 3 million barrels of Russian oil, falling to 8.6 million barrels a day next month.
IEA says the implications of the slump in Russian oil cannot be understated, pointing out that it may cause lasting changes in the global energy market.
The energy body says the potential loss of Russian oil will squeeze the global market, which was already struggling to escape the fall in demand due to the pandemic.
EIA says the impact of the loss could escalate up to the next two quarters, overturning previously expected surpluses. The situation could force the developed economies to deplete their stockpiles, which it says are already at the lowest since 2014.
The warnings by IEA come at a time OPEC+ are unwilling to ramp up oil output, with the energy organization saying that its members could go for the emergency stockpiles to fill the void.
IEA slashed demand forecast for oil in 2022 by a third as rising commodity prices curtail growth. The agency expects crude use to rise by 2.1 million barrels a day this year.CL1! is down -0.47%
