The International Energy Agency’s (IEA) Executive Director Dr Fatih Birol has expressed great concern over the destruction and loss of life in Ukraine, hoping that peace will be restored soon.
“We reviewed how the Russian invasion has increased concerns among oil market participants against the backdrop of already tight global markets and heightened price volatility,” he said, following a meeting that brought together representatives of the IEA’s 31 Member Countries. “We discussed options the IEA could take over the coming days and weeks. Similarly, we discussed the situation in natural gas markets and how any disruption to Russian supplies via Ukraine would put further pressure on Europe, with flow on effects to the rest of the world.”
Indeed, Russian pipeline supplies covered 41 per cent (13 billion cubic metres, bcm) of extra-EU net gas imports in the third quarter of 2021. The EU is in growing need of gas, as shown by the European Commission’s Quarterly report on European gas markets. Russia is meeting almost half of the EU needs.
“Given these initial impacts on energy markets and the risks that they may escalate, we discussed the possibility of holding an extraordinary IEA Governing Board meeting at the Ministerial level and agreed to continue to closely monitor the evolving situation, to consult closely over the coming days and to continue to act in solidarity to ensure global energy security,” said Dr Birol.