Crude Oil Rises $3, IEA Urges Consumers to Reduce Consumption in Face of Oil Shortage

Oil prices rose $3 on Monday after EU countries earlier considered joining the United States in sanctions against Russian oil. Meanwhile, the International Energy Agency (IEA) published a 10-point plan to reduce oil consumption in the face of an energy crisis.

  • Brent crude futures rose $3.44, or 3.2%, to $111.37 a barrel.
  • WTI crude futures were up $3.54, or 3.4%, to $108.24 a barrel.

The IEA advises consumers to use less fuel through measures such as home office, car sharing, or car-free Sunday. This is intended to counteract a possible energy crisis. For this purpose, the IEA has issued a press release with a 10-point plan for fuel saving.

The 10-point plan is expected to save up to 2.7 million barrels of crude oil per day within four months. This should help to fill possible supply shortages for the time when Russian crude oil is no longer available on the market.

IEA Executive Director Fatih Birol who presented the plan said the following,

“As a result of Russia’s appalling aggression against Ukraine, the world may well be facing its biggest oil supply shock in decades, with huge implications for our economies and societies. IEA Member Countries have already stepped in to support the global economy with an initial release of millions of barrels of emergency oil stocks, but we can also take action on demand to avoid the risk of a crippling oil crunch. Our 10-Point Plan shows this can be done through measures that have already been tested and proven in multiple countries.”

Barbara Pompili, the Minister for the Ecological Transition of France specifically addresses Germany and France in this context,

“France and all European countries must get out of their dependence on fossil fuels, in particular on Russian fossil fuels as soon as possible. It is an absolute necessity, for the climate but also for our energy sovereignty. The plan proposed today by the IEA offers some interesting ideas, some of which are in line with our own ideas to reduce our dependence on oil.”

The recommendation to national governments to permanently reduce fuel consumption is not only for economic reasons, but also to address the problem of global warming.

The Spot Market is Open

Monday, March 21, 2022

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Crude Oil
15.40

109.25

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