economy
Work from home, drive slower and don't use gas cookers: IEA advice on weathering the global energy crisis
The IEA warns of "the largest supply disruption in the history of the global oil market" due to the conflict in the Middle East.
TL;DR
- The global oil market faces its largest supply disruption in history due to Middle East conflict.
- The IEA suggests demand reduction measures are crucial alongside supply measures.
- Key demand reduction strategies include minimizing road and air transport, working from home, and switching to electric cooking.
- Heightened geopolitical risk has driven crude and refined product prices higher.
- The closure of the Strait of Hormuz, which carries a fifth of global oil, is a major factor in supply disruption.
- Countries are releasing strategic petroleum reserves, with the IEA agreeing to release 400 million barrels.
- Reducing demand offers the fastest relief, improving affordability and energy security.
- Measures targeting road transport, which accounts for 45% of global oil demand, are particularly impactful.
- Fiscal measures like VAT reductions on fuel and excise duty cuts are being implemented by countries like Spain, Italy, and Germany.
- Early Friday, Brent crude futures rose, while WTI futures traded flat.