(Bloomberg) — The International Energy Agency said the world could ease oil shortages caused by Russia’s invasion of Ukraine by restricting the way people use their cars and accelerating the transformation of car-dominated cities.
“We are living through a big crisis,” IEA Executive Director Fatih Birol told a news conference on Friday. “Oil markets are in an emergency situation. And not only that, it may even get worse in the coming months.”
Economic gains could cut its oil demand by 2.7 million barrels within four months following a 10-step plan, the IEA said. That would significantly ease looming supply strains by almost offsetting the 3 million barrels per day loss of Russian production the agency anticipates for April.
“These efforts reduce the price shock felt by consumers around the world, reduce economic damage, reduce Russia’s hydrocarbon revenues and would help drive oil demand onto a more sustainable path,” the IEA said. , based in Paris, in a report.
President Vladimir Putin’s invasion of Ukraine has disrupted world commodity markets, driving up prices and prompting an urgent search for alternative sources of energy. While most countries except the United States and the United Kingdom have not banned imports of Russian oil, and none of its major customers are sanctioning natural gas supplies, there could still be disruption as buyers voluntarily avoid the trade with Moscow.
The IEA’s plan for oil demand reduction includes lower speed limits for cars, urging people to work from home, placing occasional limits on car access to city centers, making transportation cheaper public, encourage carpooling, and increased use of high-speed trains and virtual meetings instead of air travel.
Earlier this month, the agency said the European Union could cut Russian gas imports by a third within a year by increasing purchases from elsewhere, increasing renewables and increasing energy efficiency.
IEA urges action to save fuel as crisis in Russia worsens (1)
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