New Delhi, March 23: The ongoing conflict in West Asia has severely impacted over 40 oil and gas-related infrastructures across nine countries. According to Fatih Birol, Executive Director of the International Energy Agency (IEA), no nation will remain unaffected by the disruptions in oil and gas supply. Birol shared this alarming information during a press conference in Canberra, Australia, on Monday.
He emphasized that the scale of this crisis is comparable to the oil crisis of the 1970s and the gas crisis following the Russia-Ukraine war in 2022. Speaking at the National Press Club of Australia, Birol noted that the 1970s oil crisis disrupted approximately 10 million barrels per day. In contrast, the current situation has already resulted in a loss of around 11 million barrels per day.
The impact extends beyond oil and gas; the trade of essential products such as petrochemicals, fertilizers, sulfur, and helium is also affected. This will have serious repercussions for the global economy.
Earlier this month, the IEA announced the release of a record 400 million barrels of oil from emergency reserves of its member countries to address supply shortages and control rising prices.
Reports indicate that the agency is in discussions with several countries in Asia and Europe regarding further oil releases if necessary. However, the conflict has nearly halted shipping traffic through the Strait of Hormuz, making it crucial to reopen this vital trade route to resolve the fuel supply issues effectively.
Birol warned that if the crisis escalates further, it could pose a significant threat to the global economy.
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